Question

Journalize the following transaction for the Facedown Paper Company
Collections on account, 155,000
Selling and administrative expenses paid 22,000
Paid on account, 37,000
Purchased direct materials on account 26,600
Purchased indirect materials on account, 4,200
Requested direct materials costing 8,750 and indirect materials 4,200 for production
Recorded the following wages direct labor, 23,300, indirect labor 19,700
Paid the wages.
Depreciation on plant & equipment was $3,799
Applied overhead at a rate of 110 percent of direct labor
Completed jobs at a cost of 53,020
Shipped out job 425 at a cost of 48,500 and a selling price of 78,500

Answer 1

Date	Account title	Debit	credit
1	Cash	155000
	Accounts receivable		155000
2	Selling and administrative expenses	22000
	Cash		22000
3	Accounts payable	37000
	cash		37000
4	Raw material inventory	26600
	Accounts payable		26600
5	Raw material inventory	4200
	Accounts payable		4200
6	work in process inventory	8750
	Manufacturing overhead	4200
	Raw material inventory		12950
7	work in process inventory	23300
	Manufacturing overhead	19700
	Wages payable		43000
8	wages payable	43000
	cash		43000
9	Manufacturing overhead	3799
	Accumulated depreciation-plant and equipment		3799
10	work in process inventory	25630
	Manufacturing overhead (23300*110%)		25630
11	Finished goods inventory	53020
	Work in process inventory		53020
12	Accounts receivable /cash	78500
	sales revenue		78500
12-b	cost of goods sold	48500
	Finished goods inventory		48500