Holiday Manufacturing had the following inventories at December 31, Year 1, the end of its fiscal...

 

Transcribed Image Text:

Holiday Manufacturing had the following inventories at December 31, Year 1, the end of its fiscal year: Materials inventory $22,800 Work-in-process inventory 24,000 Finished goods inventory 15,600 During January of Year 2 the following transactions occurred: 1. Purchased materials on account, $151,200. 2. Requisitioned direct materials of $132,000 and indirect materials of $24,000 3. Incurred wages payable, $73,200. 4. Assigned total wages payable, of which $13,200 was considered indirect labor. 5. Incurred other manufacturing overhead, $39,360. (Credit Accounts Payable.) 6. Applied manufacturing overhead on the basis of 120% of direct labor costs. 7. Determined completed production, $247,200. Use this information to determine the amount of WIP transferred to finished goods inventory. 8. Determined cost of goods sold, $243,600. Use this information to determine the reduction to finished goods inventory. Required part a. part b. a. Prepare general journal entries to record these transactions. Holiday Manufacturing had the following inventories at December 31, Year 1, the end of its fiscal year: Materials inventory $22,800 Work-in-process inventory 24,000 Finished goods inventory 15,600 During January of Year 2 the following transactions occurred: 1. Purchased materials on account, $151,200. 2. Requisitioned direct materials of $132,000 and indirect materials of $24,000 3. Incurred wages payable, $73,200. 4. Assigned total wages payable, of which $13,200 was considered indirect labor. 5. Incurred other manufacturing overhead, $39,360. (Credit Accounts Payable.) 6. Applied manufacturing overhead on the basis of 120% of direct labor costs. 7. Determined completed production, $247,200. Use this information to determine the amount of WIP transferred to finished goods inventory. 8. Determined cost of goods sold, $243,600. Use this information to determine the reduction to finished goods inventory. Required part a. part b. a. Prepare general journal entries to record these transactions.

Answer rating: 100% (QA)

General Journal Entries for Holiday Manufacturing part a Transaction 1 Purchase of Materials Materia... View the full answer