5 Company E 440000 Raw materials purchased Raw materials req

5) Company E $440,000 Raw materials purchased Raw materials requisition Salaries and wages Direct labor Indirect labor Sales salaries $428,000 400,000 direct28,000 indirect $ 175,000 $217,000 80,000 $ 102,000 Selling cost Factory utility cost Depreciation Manufacturing OH applied to jobs 14,000 $109,000 95k factory and $ 14k non-factory) 27,500 manuf hours S 4 per DLH Cost of goods Manufactured Sales Cost of goods sold on job sheet Close oh to cost of goods sold $ 780,000 $1,210,000 750,000 Prepare all necessary journal entries use T accounts if it helps

Solution

Working:

	Account Titles and Explanation	Debit	Credit
1	Raw Materials Inventory	440000
	Cash/Accounts Payable		440000
	(To record raw materials purchased)
2	Work in process inventory	400000
	Manufacturing overhead	28000
	Raw Materials inventory		428000
	(To record raw materials requisitioned)
3	Work in process inventory	175000
	Manufacturing overhead	80000
	Sales salaries expense	217000
	Cash/Salaries and wages payable		472000
	(To record salaries and wages cost)
4	Selling expenses	102000
	Cash/Accounts Payable		102000
	(To record selling cost)
5	Manufacturing overhead	14000
	Cash/Accounts Payable		14000
	(To record factory utility cost)
6	Manufacturing overhead	95000
	Depreciation expense	14000
	Accumulated depreciation		109000
	(To record depreciation)
7	Work in process inventory	110000
	Manufacturing overhead (27500 x $4)		110000
	(To record manufacturing overheads applied)
8	Finished goods inventory	780000
	Work in process inventory		780000
	(To record cost of goods manufactured)
9	Cash / Accounts receivable	1210000
	Sales revenue		1210000
	(To record sales)
10	Cost of goods sold	750000
	Finished goods inventory		750000
	(To record cost of sales)
11	Cost of goods sold	107000
	Manufacturing overhead*		107000
	(To close manufacturing overheads to cost of goods sold)