Journal Entries for the Cost Accounting Cycle. On January 1 2021, the ledger of the Phinney Furniture Company contained, among other accounts, the following: Finished Goods, $25,000; Work in Process, $30,000; Materials, $15,000. During January, the following transactions were completed: 

(a) Materials were purchased at a cost of $28,000. 

(b) Direct materials in the amount of $21,000 were issued from the storeroom. 

(c) Storeroom requisitions for indirect materials and supplies amounted to $3,200. 

(d) The total payroll for January amounted to $31,000, including marketing salaries of $7,500 and administrative salaries of $5,500. Labor time tickets show that $15,500 of the labor cost was direct labor. 

(e) Various factory overhead costs were incurred for $12,000 on account.

(f) Total factory overhead is charged to the work in process account. 

(g) Cost of production completed in January totaled $58,000, and finished goods in the shipping room on January 31, 2021 totaled $18,000 10 . 

(h) Customers to whom shipments were made during the month were billed for $88,000. (Also record entry for cost of goods sold.) 

Required: Prepare journal entries for the transactions, including the recording, payment, and distribution of the payroll

Answer rating: 100% (QA)

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