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 hour ago

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