Question

Alison Jenifer Convertible manufacturers furniture. Journalize the following transactions for each of the transactions: a. Purchased direct materials of $800,000 and indirect materials of $34,000 on account. b. Material costing $710,000were requisitioned (used) for production. Of this total, $34,000were indirect materials. c. Labor time records show that direct labor of $300,000 and indirect labor of $94,000 were incurred (but not yet paid). d. Assigned labor cost to work in process and manufacturing overhead.

Answer 1

Solution:

No.	Account Titles and Explanation	Debit	Credit
(a)	Raw Materials [800000+34000]	$      834,000
	Accounts payable		$ 834,000
	( To record Labor cost )
(b)	Work in Process [710000-34000]	$      676,000
	Manufacturing Overhead	$        34,000
	Raw Materials		$ 710,000
	( To record raw material assigned)
(c)	No entry required	$                  -
			$             -
(d)	Work in Process	$      300,000
	Manufacturing Overhead	$        94,000
	Wages Payable		$ 394,000
	( To record wages assigned)

Notes:

1) No entry is required for transaction c, as it is just an information about labor cost.