Selected account balances and transactions of Titan Foundry Inc follow May
Selected account balances and transactions of Titan Foundry Inc. follow:
May Transactions:
a. Purchased raw materials and factory supplies on account at costs of $45,000 and $10,000, respectively. (One inventory account is maintained.)
b. Incurred wages during the month of $65,000 ($15,000 was for indirect labor).
c. Incurred factory overhead costs in the amount of $42,000 on account.
d. Made adjusting entries to record $10,000 of factory overhead for items such as depreciation (credit Various Credits). Factory overhead was closed to Work in Process. Completed jobs were transferred to Finished Goods, and the cost of jobs sold was charged to Cost of Goods Sold.
Prepare journal entries for the following:
1. The purchase of raw materials and factory supplies.
2. The issuance of raw materials and supplies into production.
3. The recording of the payroll.
4. The distribution of the payroll.
5. The payment of the payroll.
6. The recording of factory overhead incurred.
7. The adjusting entry for factory overhead.
8. The entry to transfer factory overhead costs to Work in Process.
9. The entry to transfer the cost of completed work to Finished Goods.
10. The entry to record the cost of goods sold.
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