Assume the same data from Problem 4. Record all necessary journal entries.

Data from Problem 4

DER, Inc., manufactures a single product. The following information is available for 2022:

● Raw materials: Beginning balance: $5,000. Purchased $40,000 on credit. Direct materials used in production were three-fourths of direct materials bought.

● Work in process: Beginning balance: $3,100. Ending balance: $12,900.
Units transferred out: 10,000. All units have the same average cost.

● Finished goods: Beginning balance: 0 units. Ending balance: 1,000 units.

Also known:

Transcribed Image Text:

Prime costs Indirect labor Factory insurance Utilities Factory depreciation Sales Administrative and selling costs (other than utilities) $55,000 $11,000 $2,500 $8,000 $7,000 (80% relates to production) $14 Per unit $22,000