2C Company uses job-order costing. It applies overhead cost to jobs on the basis of direct laborhours. The following transactions took place during the year:

a) $300,000 of raw materials were purchased on account
b) Raw materials were issued into production: $90,000 direct materials and $40,000 indirect materials
c) Labor costs incurred: $40,000 direct, $130,000 indirect, sales commissions $50,000, administrative salaries $100,000
d) Utility costs for the factory were $60,000
e) Depreciation recorded was $300,000 (70% related to factory; 30% related to administrative offices)
f) Manufacturing overhead of $715,000 was applied to production. Actual direct labor-hours incurred were 22,000.
g) Jobs costing $300,000 were completed and transferred into the finished goods inventory.
h) Jobs with a cost of $150,000 were sold on account for $200,000.
i) Closed the under/over applied overhead for the year.

Required: 

Prepare the necessary journal entries and summarize their balance using T-Account

Answer rating: 100% (QA)

SNo Guneral Joeurnal Debit Credit a Raw Materials 300000 Accounte Pay... View the full answer