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Burman Co. uses a job-order costing system in its manufacturing operations. The company recorded the following...

Burman Co. uses a job-order costing system in its manufacturing operations. The company recorded the following transactions during the past week: a,Purchased 75 kilograms of raw materials at $30 per kilogram. b.The payroll showed 412 hours of factory labor at $7 per hour. Analysis shows that 38 of the 412 hours are classified as indirect labor and the remainder as direct labor. c.Requisitions filled by the raw materials storeroom consisted of $1,875 of direct materials and $224 of indirect materials. d. Depreciation on factory equipment totaled $380. e. The plant superintendent's salary was $1,775. f. Other manufacturing overhead items incurred amounted to $2,016. g. Manufacturing overhead was applied at the rate of $8 per direct labor hour. h. Jobs having a total cost of $6,023 were completed and transferred to the finished goods warehouse. Sales (all on account) totaled $12,701. Cost of Goods Sold for the sales noted in (i) amounted to $8,090. Required: Prepare journal entries to record the transactions for the week. Assume all purchases are on account. Key your answers to letters a) through j) above. Show ALL supporting work and computations clearly!

Solutions

Expert Solution

a Raw materials 2250 =75*30
         Accounts payable 2250
b Work in process 2618 =(412-38)*7
Manufacturing overhead 266 =38*7
       Wages payable 2884 =412*7
c Work in process 1875
Manufacturing overhead 224
      Raw materials 2099
d Manufacturing overhead 380
      Accumulated depreciation 380
e Manufacturing overhead 1775
      Wages payable 1775
f Manufacturing overhead 2016
        Accounts payable 2016
g Work in process 2992 =(412-38)*8
      Manufacturing overhead 2992
h Finished goods 6023
      Work in process 6023
i Accounts receivable 12701
      Sales 12701
j Cost of goods sold 8090
     Finished goods 8090

ekkarill92 answered 1 year ago
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