Answer 5 & 6

5. Make necessary journal entries for the following transactions in a manufacturing concen. Jan 1, 2016 Jan 4, Jan 7 Jan 10 Jan 15 Jan 20 Jan 30 Purchased materials for $1,000,000 on account. Requisitioned for direct materials of $700,000 placed into production process. Requisitioned for indirect materials of $100,000 placed into production process Paid for direct labor of $300,000 Paid for indirect labor of $250,000. Paid other Factory overhead expenses of $630,000 The Company applied $800,000 of factory overhead to work in process a) b) Open necessary "T" accounts in the general ledger and post your journal entries. c) What is the over- or under-applied factory overhead? d) Assuming the over-or under-applied overhead was immaterial, make necessary entries for disposing off that immaterial over- or under-applied overhead. Required: Make necessary journal entries for the transactions above. 6. On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January 0,000 42,000 Production Sales ($20 per unit) Inventory, J anuary 31 anu Variable Fixed S575,000 80,000 Total Selling and ad Variable $35,000 10.500 Fixed Total Required:Prepare a variable costing income statement using the information above