Question

In: Accounting

Flow of Product Costs through Accounts Assuming a routine manufacturing activity, present journal entries (account titles...

Flow of Product Costs through Accounts

Assuming a routine manufacturing activity, present journal entries (account titles only) for each of the following transactions:

a. Purchased material on account.

b. Recorded wages payable earned but not paid.

c. Requisitioned both direct material and indirect material.

d. Assigned direct and indirect labor costs.

e. Recorded factory depreciation and accrued factory property tax.

f. Applied manufacturing overhead to production.

g. Completed work on products.

h. Sold finished goods on account. (Two journal entries, second one showing transfer cost to expense).

Solutions

Expert Solution

Please refer attached image and also refer remarks in red for understanding


Related Solutions

What is a business-like activity? Give an example, and show the journal entries to account for...
What is a business-like activity? Give an example, and show the journal entries to account for this type of activity.>
What is a business-like activity? Give an example, and show the journal entries to account for...
What is a business-like activity? Give an example, and show the journal entries to account for this type of activity.?
Prepare journal entries to record the flow of production costs during May. (If no entry is...
Prepare journal entries to record the flow of production costs during May. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Plasto Corporation manufactures a variety of plastic products including a series of molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an...
1.Explain how manufacturing costs flow through the various accounts to wind up in Finished Goods Inventory....
1.Explain how manufacturing costs flow through the various accounts to wind up in Finished Goods Inventory. 2.What causes the Manufacturing Overhead account to be under or over applied (allocated) and what steps, if any, are taken to clear the balance at the end of the accounting period?
) Briefly explain how product costs are viewed on a flow-of-activity basis.
) Briefly explain how product costs are viewed on a flow-of-activity basis.
COST FLOW EXERCISE Make necessary journal entries for the following transactions in a manufacturing concern. Jan...
COST FLOW EXERCISE Make necessary journal entries for the following transactions in a manufacturing concern. Jan 1, 2016      Purchased materials for $2,000,000 on account. Jan 4,               Requisitioned for direct materials of $1,400,000 placed into production process. Jan 4                Depreciation on Factory machinery is $250,000 Jan 6                Depreciation on Office equipment $380,000 Jan 6                Sales commission, $170,000 Jan 7                Requisitioned for indirect materials of $200,000 placed into production process Jan 10              Paid for direct labor of $600,000. Jan 15              Paid for...
Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manufacturing Company...
Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manufacturing Company for January 2016 Materials Inventory Work in Process Inventory Finished Goods Inventory Beginning inventory $114,000 $48,000 $150,000 Ending inventory 66,000 81,000 96,000 Total sales were $3,600,000, on which the company earned a 40% gross profit. Durango uses a predetermined manufacturing overhead rate of 120% of direct labor costs. Manufacturing overhead applied was $720,000. Exclusive of indirect material used, total manufacturing overhead incurred was $486,000...
Job Cost Journal Entries and T Accounts Following are certain operating data for Redwood Manufacturing Company...
Job Cost Journal Entries and T Accounts Following are certain operating data for Redwood Manufacturing Company for January 2016 Materials Inventory Work in Process Inventory Finished Goods Inventory Beginning inventory $88,000 $110,000 $176,000 Ending inventory 154,000 132,000 123,200 Total sales were $4,400,000, on which the company earned a 40% gross profit. Redwood uses a predetermined manufacturing overhead rate of 110% of direct labor costs. Manufacturing overhead applied was $871,200. Exclusive of indirect material used, total manufacturing overhead incurred was $660,000...
Entries for Flow of Factory Costs for Process Cost System Radford Inc. manufactures a sugar product...
Entries for Flow of Factory Costs for Process Cost System Radford Inc. manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $343,400, $120,200, and $79,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $19,200, and work in process at the end of the period totaled $23,700. a....
Entries for Flow of Factory Costs for Process Cost System Sweeties, Inc., manufactures a sugar product...
Entries for Flow of Factory Costs for Process Cost System Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $643,900, $225,400, and $148,100, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $36,100, and work in process at the end of the period totaled $44,400. a....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT