Question

PART B – Journal Entries: Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry). Raw materials purchases (on credit). Assume the firm purchased $282,000 worth of raw materials in March. Direct materials used in production: Mixing Department: $250,000; Packaging Department: $16,500. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit): Mixing Department: $60,000; Packaging Department: $31,800. Overhead costs applied: Mixing Department: $84,000; Packaging Department: $44,520. Actual Indirect materials used: $16,200. Actual Indirect labor used (assume did not pay Cash, use the ‘Factory Wages Payable’ account for the credit): $23,700. Actual other overhead costs incurred: $88,750 (credit the ‘Cash’ account) Transfer of costs of units transferred out from the Mixing Department to the Packaging Department (amount calculated in A.3.a. above). Transfer of costs of completed units transferred out from the Packaging Department to Finished Goods Inventory. Assume the costs of these finished goods transferred out from the Packaging Department to Finished Goods Inventory during March was $194,200. Transfer of costs from Finished Goods Inventory to COGS. Assume the costs of the units sold transferred from Finished Goods to COGS was $119,100. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material).

Please show journal entries for 8-11 only! Thank you.

Answer 1