Homes manufactures prefabricated chalets in Colorado The com

More Info Purchased materials on account, $430,000 Incurred total manufacturing wages of $118,000, which included both direct labor and indirect labor. Used direct labor in manufacturing as follows a. b. Direct Labor 14,100 28,300 19,500 21,000 Chalet 16 c. Requisitioned direct materials in manufacturing as follows: Direct Materials 41,000 56,700 62,700 66,500 Chalet 13 Chalet 16 d. Depreciation of manufacturing equipment used on different chalets, $6,200 e. Other overhead costs incurred on Chalets 13-16: Equipment rentals paid in cash $10,800 3,000 f. g. h. Prepaid plant insurance expired Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. Chalets completed: 13, 15, and 16 Chalets sold on account: 13 for $97,000 and 16 for $140,000 PrintDone

Solution

Answer 1. Journal Entry Date Particulars Dr. Amt Cr. Amt a. Direct Materials                                         430,000 Accounts Payable       430,000 (Record the material purchased) b. WIP                                                                    82,900 Factory Overhead                                        35,100 Wages Payable       118,000 (Record the factory labor used) c. WIP                                                                 226,900 Direct Materials       226,900 (Record the material issued to WIP) d. Factory Overhead                                      6,200 Accumulated Dep. - Manf. Equip.            6,200 (Record the dep. Charged) e. Factory Overhead                                    13,800 Cash          10,800 Prepaid Plant Insurance            3,000 (Record the factory overhead incurred) f. WIP                                                                49,740 Factory Overheads          49,740 (Records the Factory Overhead charged to WIP) g. WIP                                                   257,560 Finished Goods       257,560 (Record the Job 13, 15 & 16 Completed and transferred to Finished goods) h-1 Accounts receivables                237,000 Sales       237,000 (record the Job 13 & 16 sold) h-2 Cost of Goods Sold                                 163,660 Finished Goods       163,660 (record the cost of goods sold) Answer 2. Finished goods WIP Beg. Bal                     -   Beg. Bal                       -   g.          257,560          163,660 h-2 b.              82,900          257,560 f. c.           226,900 End. Bal.            93,900 f.              49,740 End. Bal.           101,980 Answer 3. Sunrise Homes Reconciliation of WIP Inventory Subsidiary Job-14 Direct Material            56,700 Direct Labor            28,300 Manufacturing Overehad - 60% of Labor            16,980 Total costs equal to WIP Balance          101,980 Answer 4. Sunrise Homes Reconciliation of Finished Goods Inventory Subsidiary Job-15 Direct Material            62,700 Direct Labor            19,500 Manufacturing Overehad - 60% of Labor            11,700 Total costs equal to Finished Goods Balance            93,900