Prepare summary journal entries to record the following transactions for a company in its first operating month.
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Question:
Prepare summary journal entries to record the following transactions for a company in its first operating month.
- Raw materials purchased from the account, $90,000.
- Direct materials used in production, $36,500. Indirect materials used in production, $19,200.
- Cash paid for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 for indirect labor.
- Cash paid for other actual overheads, $11,475.
- Overhead applied at 125% of direct labor cost.
- The cost of completed work transferred to finished products is $56,800.
- He sold the works for $82,000 on the account. The jobs cost $56,800.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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