Journalize the following transactions for Marge's SofasMarge's Sofas. SOLVE ONLY FOR i. Adjusted for overallocated or underallocated
Question:
Journalize the following transactions for Marge's SofasMarge's Sofas.
SOLVE ONLY FOR i. Adjusted for overallocated or underallocated overhead.
Given information
a.Incurred and paid Web site? expenses $2,000.
b.Incurred manufacturing wages of $15,000?, 75?% of which was direct labor and 25?% of which was indirect labor.
c.Purchased raw materials on? account $24,000.
d.Used in? production: direct? materials,$7,500? ;indirect? materials,$5,000.
e.Recorded manufacturing? overhead: depreciation on? plant,$18,000?;plant insurance? (previously paid),$1,500?;plant property? tax, $3,900?(credit Property Tax? Payable).
f.Allocated manufacturing overhead to? jobs, 200?%
of direct labor costs.
g.Completed production on jobs with costs of $40,000.
h.Sold inventory on? account 22,000?;cost of goods? sold $ 18,000
i.Adjusted for overallocated or underallocated overhead.
?(Record debits? first, then credits. Exclude explanations from any journal? entries.)
a. Incurred and paid Web site? expenses,$2,000.
??
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
a. | Website Expenses | 2,000 | |||
Cash | 2,000 | ||||
b. Incurred manufacturing wages of $15,000?, 75?% of which was direct labor and 25?% of which was indirect labor.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
b. | Work-in-Process Inventory | 11,250 | |||
Manufacturing Overhead | 3,750 | ||||
Wages Payable | 15,000 | ||||
c. Purchased raw materials on? account, $24,000.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
c. | Raw Materials Inventory | 24,000 | |||
Accounts Payable | 24,000 | ||||
d. Used in? production: direct? materials, $7,500?; indirect? materials, $5,000.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
d. | Work-in-Process Inventory | 7,500 | |||
Manufacturing Overhead | 5,000 | ||||
Raw Materials Inventory | 12,500 | ||||
e. Recorded manufacturing? overhead: depreciation on? plant, $18,000?; plant insurance? (previously paid), $1,500?; plant property? tax, $3,900 (credit Property Tax? Payable). ?(Prepare a compound? entry.)
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
e. | Manufacturing Overhead | 23,400 | |||
Accumulated Depreciation–Plant | 18,000 | ||||
Prepaid Insurance | 1,500 | ||||
Property Tax Payable | 3,900 |
f. Allocated manufacturing overhead to? jobs, 200?% of direct labor costs.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
f. | Work-in-Process Inventory | 22,500 | |||
Manufacturing Overhead | 22,500 | ||||
g. Completed production on jobs with costs of $40,000.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
g. | Finished Goods Inventory | 40,000 | |||
Work-in-Process Inventory | 40,000 | ||||
h. Sold inventory on? account, $22,000?; cost of goods? sold, $18,000.
Begin by recording the revenue from the sales on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
h. | Accounts Receivable | 22,000 | |||
Sales Revenue | 22,000 | ||||
Now record the expense related to the sale.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
h. | Cost of Goods Sold | 18,000 | |||
Finished Goods Inventory | 18,000 | ||||
i. Adjusted for overallocated or underallocated overhead.
Date | Accounts | Debit | Credit | ||
---|---|---|---|---|---|
i. | Cost of Goods Sold | ||||
Manufacturing Overhead | |||||
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura