Question

In: Accounting

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 Direct Labor costs incurred during August.

H. The cost of product completed: $10,000.

I. Sales on account: $17,500. The cost of the units sold was $9,500.

What would the journal entries for this look like?

Solutions

Expert Solution

Answer-

Transaction Account Title and Explanation Debit ($) Credit ($)
A. Raw Materials Inventory 3,100
  Accounts Payable 3,100
(To record purchase of raw materials on account)
B. Selling and Administrative Expenses 1,200
Cash 1,200
(To record selling and administrative expenses paid)
C. Work in Process 3,900
  Raw Materials Inventory 3,900
(To raw materials used in production)
D. Factory Overhead 300
Raw Materials Inventory` 300
(To record use of indirect materials)
E. Work in Process ($4,000*90%) 3,600
Factory Overhead ($4,000*10%) 400
Accounts Payable 4,000
(To record direct and indirect wages incurred)
F. Factory Overhead ,1,300
Accounts Payable 1,300
(To record factory overhead incurred)
G. Work in Process 2,160
  Factory Overhead 2,160
(To record factory overhead assigned to work in process at 60% of direct labor cost; 3,600 x 60% = $2,160)
H. Finished Goods Inventory 10,000
Work in Process 10,000
(To record cost of products completed)
I. Accounts Receivable 17,500
  Sales 17,500
Cost of Goods Sold 9,500
Finished Goods Inventory 9,500
(To record cost of goods sold)

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