Problem 1: During the month, EKM Enterprise purchased $100,000 in raw material on account, used $150,000...

Problem 1: During the month, EKM Enterprise purchased $100,000 in raw material on account, used $150,000 in direct labor hours, and used $100,000 in direct raw materials. EKM Enterprise applies overhead at a rate of 200% of direct labor. No products were finished during the period. Prepare the necessary journal entries including the purchase of raw materials.

General journal	debit	credit

Expert Solution

S. No	General Journal	Debit	Credit
1	Raw Material Inventory	$100,000
	Accounts Payable		$100,000
	*(To record the purchase of raw materials)*

2	Work - In Process inventory	$100,000
	Raw Material Inventory		$100,000
	*(To record usage of direct material)*

3	Work - In Process inventory	$150,000
	Wages payable		$150,000
	*(To record usage of direct labor)*

4	Work - In Process inventory	$300,000
	Manufacturing overhead / Factory overhead [$150,000 x 200%]		$300,000
	*(To record applied manufacturing overhead)*

ekkarill92 answered 1 month ago

During the month December the company procured raw material worth OMR 150,000.During this period the company...

During the month December the company procured raw material worth OMR 150,000.During this period the company has undertaken different jobs. The factory overhead rate is estimated at 130% of direct labour cost but actual factory overhead incurred is OMR 68,000. The company purchased a machinery on 01.01.2019 at OMR 500,000 to be depreciated at 10% p.a. Other important information is given below: Jobs completed No:301,303,304,305 and 306 Job no. 301,303,304 and 305were shipped and customers were billed for OMR 60,000,...

Enter the following entries for the month of August. A. Purchased raw materials on account: $3,100....

Enter the following entries for the month of August. A. Purchased raw materials on account: $3,100. B. Selling and Administrative expenses incurred and paid: $1,200. C. Used direct materials: $3,900. D. Used indirect materials: $300. E. Manufacturing wages incurred totaled $4,000, of which 90% was direct labor and 10% was indirect labor. F. Incurred other actual factory overhead on account: $1,300. G. Factory Overhead was allocated to Work in Process Inventory at a predetermined overhead allocation rate of 60% of...

Raw materials purchased on account, $210,000. Raw materials used in production, $191,000 ($152,800 direct materials and...

Raw materials purchased on account, $210,000. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours were used in October. Jobs costing $513,000 according to their job cost sheets were...

1. During the current month, Waterway Company incurs the following manufacturing costs. (a) Purchased raw materials...

1. During the current month, Waterway Company incurs the following manufacturing costs. (a) Purchased raw materials of $17,800 on account. (b) Incurred factory labor of $38,200. (c) Factory utilities of $3,800 are payable, prepaid factory property taxes of $2,810 have expired, and depreciation on the factory building is $9,800. Record the company’s manufacturing costs in its job order costing system. 2. During January, its first month of operations, Ayayai Company accumulated the following manufacturing costs: raw materials purchased $4,100 on...

1. A company manufactures a product from a raw material, which is purchased at ` 54...

1. A company manufactures a product from a raw material, which is purchased at ` 54 per kg. The company incurs a handling cost of ` 350 plus freight of ` 400 per order. The incremental carrying cost of inventory of raw material is Re. 0.50 per kg per month. In addition, the cost of working capital finance on the investment in inventory of raw material is `8 per kg per annum. The annual production of the product is 94,500...

During the current month, Cullumber Company incurs the following manufacturing costs. (a) Purchased raw materials of...

During the current month, Cullumber Company incurs the following manufacturing costs. (a) Purchased raw materials of $18,300 on account. (b) Incurred factory labor of $40,200. Of that amount, $32,400 relates to wages payable and $7,800 relates to payroll taxes payable. (c) Factory utilities of $3,600 are payable, prepaid factory property taxes of $2,940 have expired, and depreciation on the factory building is $9,000. Prepare journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount...

Journalize the following transactions for Gecco Manufacturing. 1. Purchased raw materials on account, $660,000. 2. Raw...

Journalize the following transactions for Gecco Manufacturing. 1. Purchased raw materials on account, $660,000. 2. Raw materials used in production: direct materials = $504,000 and indirect materials = $73,500. 3. Incurred total manufacturing wages of $681,500, of which $586,000 was direct labor and $95,500 was indirect labor. 4. Other manufacturing overhead costs incurred (depreciation, insurance, property taxes, etc.) totalled $215,220. (Record one transaction and credit "Other Accounts.") 5. Allocated manufacturing overhead to jobs, 65% of direct...

Month Sales January $100,000 February $120,000 March $150,000 April $180,000 May $150,000 June $120,000 July $150,000...

Month Sales January $100,000 February $120,000 March $150,000 April $180,000 May $150,000 June $120,000 July $150,000 August $180,000 Actual November and December 2018 sales were $200,000 and $90,000, respectively. Cash sales are 45% of the total and the rest are on credit. About 70% of credit sales are typically collected one month after the sale and 30% the second month. Monthly inventory purchases represent 50% of the following month’s sales. The firm pays 40% of its inventory purchases in cash...

Step 1: Enter the following entries for the month of August. A. Purchased raw materials on...

Step 1: Enter the following entries for the month of August. A. Purchased raw materials on account: $3,100. B. Selling and Administrative expenses incurred and paid: $1,200. C. Used direct materials: $3,900. D. Used indirect materials: $300. E. Manufacturing wages incurred totaled $4,000, of which 90% was direct labor and 10% was indirect labor. F. Incurred other actual factory overhead on account: $1,300. G. Factory Overhead was allocated to Work in Process Inventory at a predetermined overhead allocation rate of...

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $49,400. 2. Raw Materials...

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $49,400. 2. Raw Materials of $41,300 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials. 3. Factory labor costs incurred were $65,200, of which $51,300 pertained to factory wages payable and $13,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,600 was direct labor and $10,600 was indirect labor. 5. Manufacturing overhead costs incurred...

Question