Exam 2 6 Help Save Exi Zelda Manufacturing organized in Jun

Exam 2 6 Help Save & Exi Zelda Manufacturing organized in June and recorded the following transactions during its first month of operations 23 1. Purchased materials costing $800,000 2. Used direct materials in production costing $485,000. 3. Applied direct labor costs of $500,000 to various jobs. 4. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) 5. Incurred actual manufacturing overhead costs of $245,000 (credit \"Various Accounts\"). 6. Transferred completed jobs costing $745,000 to finished goods. 15 0155.29) 7. Sold completed jobs for $1.000,000 on account. The cost applied to the jobs sold totaled $615,000. 8. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30. a. Prepare a journal entry for each of the eight transactions listed above. b. Compute the balance of the Cost of Goods Sold account at June 30. c. Determine the company\'s inventory balances at the end of June Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a journal entry for each of the eight transactions listed above. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.) View transaction list ournal entry worksheet Record materials purchased on account.

Solution

Solution a:

Solution b:

Balance in cost of goods sold account at june 30 = $615,000 - $5,000 = $610,000

Solution c:

Inventory balances:

Material inventory = Raw material purchased - Raw material consumed = $800,000 - $485,000 = $315,000

Work In Process Inventory = $485,000 + $500,000 + $250,000 - $745,000 = $490,000

Finished goods inventory = $745,000 - $615,000 = $130,000

Journal Entries - Zelda Manufacturing
Event	Particulars	Debit	Credit
1	Raw material inventory Dr	$800,000.00
	To Accounts payable		$800,000.00
	(To record purchase of material)
2	Work In Process Dr	$485,000.00
	To Raw material inventory		$485,000.00
	(To record raw material used in production)
3	Work In Process Dr	$500,000.00
	To Factory wages		$500,000.00
	(To apply direct labor on job)
4	Work In Process Dr ($500,000/20*10)	$250,000.00
	To Manufacturing overhead		$250,000.00
	(To apply manufacturing overhead)
5	Manufacturing overhead Dr	$245,000.00
	To Accounts payable		$245,000.00
	(To record manufacturing overhead incurred)
6	Finished goods inventory	$745,000.00
	To Work in process		$745,000.00
	(Being completed units transferred to finished goods)
7a	Accounts receivables Dr	$1,000,000.00
	To Sales Revenue		$1,000,000.00
	(To record sales revenue)
7b	Cost of goods sold Dr	$615,000.00
	To Finished goods inventory		$615,000.00
	(To record COGS)
8	Manufacturing overhead Dr	$5,000.00
	To Cost of goods sold		$5,000.00
	(Being overapplied overhead closed to COGS)