Josie Inc. has provided the following information for 2015:

Purchased raw materials on account for $121,900.

Issued $114,300 in raw materials to production ($21,100 were not traceable to specific jobs).

Incurred $100,632 in direct labor costs (14,376 hours) and $61,000 in supervision costs (paid in cash).

Incurred the following additional manufacturing overhead costs: factory lease $22,800 (paid in cash); depreciation on equipment $19,500; custodial supplies $6,800 (paid in cash).

Incurred the following nonmanufacturing costs, both paid in cash: advertising $73,800; sales commissions $86,200.

Applied manufacturing overhead to jobs in process at a rate of $12 per direct labor hour.

Completed jobs costing a total of $344,200.

Sold jobs for $426,500 on account. The cost of the jobs was $341,800.

Closed the Manufacturing Overhead account balance.

Prepare the journal entries to record these transactions.

Answer rating: 100% (QA)

Solution Journal Entries in the books of Josie Inc Date Accounts tittle Debit Credit 2015 a Material ... View the full answer