Prepare summary journal entries to record the following transactions and events a through g for a company
Question:
Prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations.
a. Raw materials purchased on account, $96,000.
b. Direct materials used in production, $54,000. Indirect materials used in production, $13,000.
c. Paid cash for factory payroll, $47,000. Of this total, $38,000 is for direct labor and $9,000 is for indirect labor.
d. Paid cash for other actual overhead costs, $19,000.
e. Applied overhead at the rate of 120 percent of direct labor cost.
f. Transferred cost of jobs completed to finished goods, $123,800.
g. Sold jobs on account for $173,000. The jobs had a cost of $123,800. 000
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta