Question

In: Accounting

Entries Accounts payable Cost of goods sold Factory overhead Factory wages payable Other accounts Raw materials...

Entries

  • Accounts payable
  • Cost of goods sold
  • Factory overhead
  • Factory wages payable
  • Other accounts
  • Raw materials inventory
  • Work in process inventory



Starr Company reports the following information for August.

Raw materials purchased on account $ 85,800
Direct materials used in production $ 52,400
Factory wages earned (direct labor) $ 17,300
Overhead rate 125 % of direct labor cost


Prepare journal entries to record the following events.

  1. Raw materials purchased.
  2. Direct materials used in production.
  3. Direct labor used in production.
  4. Applied overhead.

Journal entry worksheet

  • Record raw materials purchased on account.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
1

Journal entry worksheet

  • Record the entry to assign direct materials to jobs.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
2

Journal entry worksheet

  • Record the entry to assign direct labor to jobs.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
3

Journal entry worksheet

  • Record the application of overhead to work in process.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
4

Solutions

Expert Solution

Transaction Accounts Titles and Explanation Debit Credit
1 Raw materials inventory $ 85,800
         Accounts payable $ 85,800
(To record the purchase of raw materials on Account)
2 Work in process inventory $ 52,400
              Raw materials inventory $ 52,400
(To record the materials used in Production)
3 Work in process inventory $ 17,300
              Wages Payable $ 17,300
(To record the direct labor used in Production)
4 Work in process inventory $ 21,625
              Maufacturing overhead
                  ( $ 17,300 x 125% )		 $ 21,625
(To record the applied overhead )

ekkarill92 answered 2 years ago
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