Question

Journal Entries

a. Raw materials were purchased on account, $60,000.

b. Raw materials were requisitioned for use in production, $52,000. $50,000 direct and $2,000 indirect.

c. Accrual of factory wages $60,000; and maintenance workers for the factory $15,000.

d. Accrued factory costs utilities $21,000, equipment rental $16,000 and cable, internet and phone factory costs $3,000.

e. Accrual of property taxes on the factory, $13,000.

f. Expiration of prepaid medical insurance on factory workers, $12,000

g. Depreciation was recorded on the factory equipment in the amount $18,000

h. Application of MFH OH 15,500 Machine hrs. incurred -> Show calculation

i. Accrued management salaries $21,000 and office staff salaries $9,000

j. Depreciation on office equipment 8,000

k. Advertising for the period accrued in the amount of $40,000.

l. Cable TV, Internet and phone Expense selling $38,000, and G&A was $4,000

m. $158,000 goods completed and transferred to finished goods department.

n1. Sold $500,000 (sales price) on account for goods costing $118,000

n2. Sold $500,000 (Sales price) on account for goods costing $118,000

4b Write off under applied or over applied MFG OH to COGS

Answer 1

Answer -

Required journal entries are as prepared below:

Date	Particulars	l.F	Amount ($)	Amount ($)
a.	Raw Material inventory		60,000
	Accounts Payable			60,000
	(For raw material purchased on account)
b.	Work in Process		50,000
	Manufacturing overhead		2,000
	Raw material Inventory			52,000
	(For raw material issued to production)
c.	Work in Process		60,000
	Manufacturing Overhead		15,000
	Salaries and wages payable			75,000
	(For labour cost incurred)
d.	Manufacturing Overhead		40,000
	cash			40,000
	(For expenses incurred)
e.	Manufacturing overhead		13,000
	Propery tax payable			13,000
	(For property tax payable)
f.	Manufacturing overhead		12,000
	Prepaid insurance			12,000
	(For prepaid ins expired)
g.	Manufacturing Overhead		18,000
	Accumulated dep			18,000
	(For dep recorded)
H	Require more information
i.	Salaries exp		30,000
	Salaries payable			30,000
	(for salaries accrued)
j.	Depreciation -office equipment		8,000
	Accumulated dep			8,000
	(For dep recorded)
k.	Advertising exp		40,000
	Advertising exp payable			40,000
	(For expenses accrued)
l.	Selling and administrative exp		42,000
	Cash			42,000
	(for exp paid)
m	Finished goods		158,000
	Work in process			158,000
	(For completed orders transferred to finished goods)
n1	Accounts Receivable		500,000
	Sales			500,000
	(For goods sold on account)
n2	Cost of goods sold		118,000
	Finished goods			118,000
	(For cost of goods sold recorded)

In case of any doubts plz let me know