Smart Company produces furniture. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing...

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Smart Company produces furniture. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $20 per machine hour in 2021). The following data (in millions) show operation costs for 2021. Beginning and ending balances of inventories are as follows: Materials Control, beginning balance, Jan 1, 2021 . $ 15 Work in process Control, beginning balance, Jan 1, 2021 30 Finished goods Control, beginning balance, Jan 1, 2021 40 Materials Control, ending balance, Dec 31, 2021 25 Work in process Control, ending balance, Dec 31, 2021 20 Finished goods Control, ending balance, Dec 31, 2021 . 35 Required Prepare journal entries for the following items during the 2021 (7 points each): a) Direct materials purchased on credit is $120 Debit Сredit Materials inventory 120 120 accounts payable b) Direct materials used (Calculate and record) Debit Credit Work in process 110 110 Materials inventory c) Direct manufacturing labor cost incurred $140 Debit Credit Work in process 140 140 wages payable d) Indirect manufacturing labor cost incurred $50 Debit Credit мон сontrol 50 50 wages payable e) Depreciation of manufacturing equipment was $18 Debit Сredit мон сontrol 18 18 accumulated depreciation + f) Allocate Manufacturing overhead (Calculate based on 3,000,000 actual machine hours) Debit Credit Work in process MOH allocated g) Cost of good manufactured (Calculate and record) Debit Credit finished goods Work in process h) Calculate and record cost of goods sold Debit Credit cost of goods sold finished goods j) Write off under/overallocated overhead to cost of goods sold Debit Credit Smart Company produces furniture. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $20 per machine hour in 2021). The following data (in millions) show operation costs for 2021. Beginning and ending balances of inventories are as follows: Materials Control, beginning balance, Jan 1, 2021 . $ 15 Work in process Control, beginning balance, Jan 1, 2021 30 Finished goods Control, beginning balance, Jan 1, 2021 40 Materials Control, ending balance, Dec 31, 2021 25 Work in process Control, ending balance, Dec 31, 2021 20 Finished goods Control, ending balance, Dec 31, 2021 . 35 Required Prepare journal entries for the following items during the 2021 (7 points each): a) Direct materials purchased on credit is $120 Debit Сredit Materials inventory 120 120 accounts payable b) Direct materials used (Calculate and record) Debit Credit Work in process 110 110 Materials inventory c) Direct manufacturing labor cost incurred $140 Debit Credit Work in process 140 140 wages payable d) Indirect manufacturing labor cost incurred $50 Debit Credit мон сontrol 50 50 wages payable e) Depreciation of manufacturing equipment was $18 Debit Сredit мон сontrol 18 18 accumulated depreciation + f) Allocate Manufacturing overhead (Calculate based on 3,000,000 actual machine hours) Debit Credit Work in process MOH allocated g) Cost of good manufactured (Calculate and record) Debit Credit finished goods Work in process h) Calculate and record cost of goods sold Debit Credit cost of goods sold finished goods j) Write off under/overallocated overhead to cost of goods sold Debit Credit

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