Question

Lonyx Telecommunications produces components for the telecommunication systems.
Initially the company manufactured the parts for its own networks, but it gradually
began selling them to other companies as well.
a.	Collections on account, $149,000.
b.	Marketing and general expenses incurred and paid, $25,000.
c.	Paid $38,000 on account.
d.	Material 24500s purchases on credit, glass substrate of $24,500; indirect
	materials, $4,600.
e.	Materials used in production (requisitioned):
	1. Job 120, glass substrate, $750
	2. Job 121, glass substrate, $7,800
	3. Indirect Materials, $2,000
f.	Manufacturing wages incurred during April, $38,000 of which $36,000
	was paid.
g.	Labor time records for the month: Job 120, $4,000; Job 121, $18,000;
	indirect labor, $16,000.
h.	Depreciation on plant and equipment (debit overhead) $2,400.
i.	Manufacturing overhead was allocated at the predetermined rate of
	70% of direct labor dollars.
j.	Jobs completed during the month; Job 120.
k.	Credit Sales on account: Job 120 for $10,000.
l.	Closed the manufacturing overhead account to Cost of Goods Sold.
Prepare journal entries for the above transactions.

Answer 1

Journal Entries
S. no.	Accounts title and explanations				Debit $	Credit $
A.	Cash Account Dr.				149000
	Accounts receivable					149000
b.	Sselling and Admn Overheads Dr.				25000
	Cash Account					25000
c.	Accounts payable Dr.				38000
	Cash Account					38000
d.	Raw material Inventory Dr.				29100
	Accounts payable					29100
e.	Wwork in process (Job no. 120) Dr.				750
	Work in Process (Job no. 121) Dr.				7800
	factory Overheads Dr.				2000
	Raw material Inventory Account					10550
f.	Manufacturing Wages Dr.				38000
	Cash Account					36000
	Wages payable					2000
g.	Wwork in process (Job no. 120) Dr.				4000
	Work in Process (Job no. 121) Dr.				18000
	factory Overheads Dr.				16000
	Manufacturing Wages					38000
h.	Factory Overheads Dr.				2400
	Accumulated Depreciation					2400
i.	Wwork in process (Job no. 120) Dr.				2800
	Work in Process (Job no. 121) Dr.				12600
	Factory Overheads					15400
j.	Finished Goods inventory Dr.				7550
	Work in Proccess (Job no.120)					7550
k.	Accounts receivable Dr.				10000
	sales revenue					10000
	Cost of Goods sold Dr.				7500
	Finished Goods inventory					7500
l.	Cost of Goods sold Dr. (2000+16000+2400-15400)				5000
	Factory overheads					5000