1. Journalize the following transactions: 1. Madison Co. purchased $112,000 of raw materials on account. 2....

 

Transcribed Image Text:

1. Journalize the following transactions: 1. Madison Co. purchased $112,000 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Repairs (a/p): $2,500 b. Utilities : $875 c. Depreciation on equipment: $1625 d. Rent (paid in advance): $2750 e. Insurance (prepaid policy): $1415 f. Indirect Material: $2,000 3. Factory Labor totaled $55,000, of which $3,000 is employer payroll taxes 4. Madison Co. issued $55,310 of material to Process 1. 5. Assigned $18,000 of factory labors costs, of which $10,000 was assigned to Process 1 and the remainder was indirect. 6. Manufacturing overhead costs are applied at 74% of material issued (round to nearest dollar) 7. Balance in WIP - 1 is transferred to Process -2 8. $15,450 of material is issued to Process - 2 9. Assigned factory labor totaling $22,000, of which $12,000 was assigned to process 2 and remainder was indirect. 10. Manufacturing overhead costs are applied to Process 2 at a rate of 49.5% of material issued (to process 2) **Round to nearest dollar** 11. Actual manufacturing overhead costs paid totaled $3,450; manufacturing overhead costs charged to accounts payable totaled $13,975 12. Balance of Process 2 is transferred to Process 3 13. $8,000 of material is issued into process 3 14. Assigned factory labor totaling $15,000, of which $5000 was assigned to process 3 and the remainder was indirect. 15. Manufacturing overhead costs are applied to Process 3 at a rate of 75.25% of materials issued (to process 3). 16. Process 3 has been completed, which completes the manufacturing process. 17. The cost transferred to finished goods included 15,000 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 2500 units for $40,625 (customer paid 15% down and owes the remainder); they sold 850 units for $14,000 on account 18. Determine over or under-applied manufacturing overhead costs and prepare adjusting entry. 1. Journalize the following transactions: 1. Madison Co. purchased $112,000 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Repairs (a/p): $2,500 b. Utilities : $875 c. Depreciation on equipment: $1625 d. Rent (paid in advance): $2750 e. Insurance (prepaid policy): $1415 f. Indirect Material: $2,000 3. Factory Labor totaled $55,000, of which $3,000 is employer payroll taxes 4. Madison Co. issued $55,310 of material to Process 1. 5. Assigned $18,000 of factory labors costs, of which $10,000 was assigned to Process 1 and the remainder was indirect. 6. Manufacturing overhead costs are applied at 74% of material issued (round to nearest dollar) 7. Balance in WIP - 1 is transferred to Process -2 8. $15,450 of material is issued to Process - 2 9. Assigned factory labor totaling $22,000, of which $12,000 was assigned to process 2 and remainder was indirect. 10. Manufacturing overhead costs are applied to Process 2 at a rate of 49.5% of material issued (to process 2) **Round to nearest dollar** 11. Actual manufacturing overhead costs paid totaled $3,450; manufacturing overhead costs charged to accounts payable totaled $13,975 12. Balance of Process 2 is transferred to Process 3 13. $8,000 of material is issued into process 3 14. Assigned factory labor totaling $15,000, of which $5000 was assigned to process 3 and the remainder was indirect. 15. Manufacturing overhead costs are applied to Process 3 at a rate of 75.25% of materials issued (to process 3). 16. Process 3 has been completed, which completes the manufacturing process. 17. The cost transferred to finished goods included 15,000 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 2500 units for $40,625 (customer paid 15% down and owes the remainder); they sold 850 units for $14,000 on account 18. Determine over or under-applied manufacturing overhead costs and prepare adjusting entry.

Answer rating: 100% (QA)

Journal of Madison co Accounts Title and Explanation Debit Credit 1 Raw Material 112000 Accounts Payable 112000 Raw Material Purchased on account 2 Ma... View the full answer