Question

Sterling Products Company uses a job- order costing system. The company incurred the following manufacturing costs during March:

a. Purchased materials on credit,$58,800.

b. Issued materials to production as follows: direct,$51,000; indirect,$111,300.

c. Incurred factory wages,$59,400.

d. Allocated factory wages to production as follows: direct,$45,000;indirect,$14,900.

e. incurred factory overhead costs on account,$2,500.

f. Recognized other factory overhead costs as follows: depreciation of equipment,$4,00; depreciation of building,$5,000;expired insurance,$600; accrued property taxes, $1,800.

g. Applied factory overhead to production,$32,500.

h. completed jobs costing $125,500.

i.    Sold finished goods costing $118,900 to various customer; billed customers for $161,704

( make two entries ).

Required:

Record these summary transactions in general journal form.

Answer 1

	General Journal	Debit	Credit
a.	Raw materials inventory	58800
	Accounts payable		58800
b.	Work in process inventory	51000
	Factory overhead	111300
	Raw materials inventory		162300
c.	Factory wages	59400
	Wages payable		59400
d.	Work in process inventory	45000
	Factory overhead	14900
	Factory wages		59900
e.	Factory overhead	2500
	Accounts payable		2500
f.	Factory overhead	7800
	Accumulated depreciation - equipment		400
	Accumulated depreciation - building		5000
	Prepaid Insurance		600
	Property taxes payable		1800
g.	Work in process inventory	32500
	Factory overhead		32500
h.	Finished goods inventory	125500
	Work in process inventory		125500
i.	Accounts receivable	161704
	Sales		161704
	Cost of goods sold	118900
	Finished goods inventory		118900