In: Accounting
Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $80,500. 6. Depreciation on the company’s office building was $8,100. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $88,000 were completed and transferred to finished goods. 9. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Journalize the transactions.
Journal entries: | |||||||
S.no. | Accounts title and explanations | Debit $ | Credit $ | ||||
1 | Raw material Inventory Account Dr. | 46300 | |||||
Accounts payable account | 46300 | ||||||
2 | Work in process inventory Account Dr. | 29200 | |||||
Manufacturing Overheads account Dr. | 6800 | ||||||
Raw material Inventory account | 36000 | ||||||
3 | factory Wages account Dr. | 59900 | |||||
Factory wages payable Account | 51000 | ||||||
Payroll Tax payable Account | 8900 | ||||||
4 | Work in process inventory Account Dr. | 54000 | |||||
Manufacturing Overheads account Dr. | 5900 | ||||||
Factory wages account | 59900 | ||||||
5 | Manufacturing overheads account Dr. | 80500 | |||||
Accounts payable account | 80500 | ||||||
6 | Admin Overheads account Dr. | 8100 | |||||
Accumulated depreciation-Office building | 8100 | ||||||
7 | Work in process inventory Account Dr. | 81000 | |||||
Manufacturing Overheads account | (54000*150%) | 81000 | |||||
8 | Finished Goods inventory Account Dr. | 88000 | |||||
Work in process invetory Account | 88000 | ||||||
9 | Accounts receivable Dr. | 103000 | |||||
Sales revenue | 103000 | ||||||
Cost of goods sold Account Dr. | 75000 | ||||||
Inventory account | 75000 | ||||||