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1. What is the Journal Entry for: August 4,20X5 purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4000 on account. A. Raw Materials Inventory 4,000                Cash                              4000 B. Accounts Payable      4000               Raw Materials Inventory 4000 C. Raw Materials Inventory     4000               Accounts Payable.          4000 D. Cash                                   4000             Raw Materials Inventory   4000 2. How much do you need to DEBIT the work-in-Process account for the following transaction? Aug 8,20X5 - Transferred 60% of the raw materials purchased on August 4 into production:

1. What is the Journal Entry for: August 4,20X5 purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4000 on account. A. Raw Materials Inventory 4,000                Cash                              4000 B. Accounts Payable      4000               Raw Materials Inventory 4000 C. Raw Materials Inventory     4000               Accounts Payable.          4000 D. Cash                                   4000             Raw Materials Inventory   4000 2. How much do you need to DEBIT the work-in-Process account for the following transaction? Aug 8,20X5 - Transferred 60% of the raw materials purchased on August 4 into production:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What is the Journal Entry for:
August 4,20X5 purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4000 on account.

A. Raw Materials Inventory 4,000

               Cash                              4000

B. Accounts Payable      4000

              Raw Materials Inventory 4000

C. Raw Materials Inventory     4000

              Accounts Payable.          4000

D. Cash                                   4000

            Raw Materials Inventory   4000

2. How much do you need to DEBIT the work-in-Process account for the following transaction?
Aug 8,20X5 - Transferred 60% of the raw materials purchased on August 4 into production:

Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete the entries, determine the amount to include in raw materials, work in process, and finished goods. Aug. 4, 20X5 Aug. 8, 20X5 Aug. 8, 20X5 Aug. 9, 20X5 Aug. 10, 20X5 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4,000, on account. Transferred 60% of the raw materials purchased on August 4 into production. Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor cost. Transferred completed awnings with total assigned costs of $4,400 to finished goods. Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash.
Transcribed Image Text:Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete the entries, determine the amount to include in raw materials, work in process, and finished goods. Aug. 4, 20X5 Aug. 8, 20X5 Aug. 8, 20X5 Aug. 9, 20X5 Aug. 10, 20X5 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4,000, on account. Transferred 60% of the raw materials purchased on August 4 into production. Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor cost. Transferred completed awnings with total assigned costs of $4,400 to finished goods. Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash.
GENERAL JOURNAL Date 8-4-X5 8-8-X5 8-9-X5 8-10-X5 Raw Materials Inventory Accounts Payable To record purchase of raw materials Accounts Work in Process Raw Materials Inventory Salaries Payable Factory Overhead To transfer raw materials to production, record direct labor costs on job, and apply overhead at the predetermined rate Finished Goods Inventory Work in Process 8-10-X5 Cash Sales To transfer completed units to finished goods inventory To record sale of finished awning for $4,000 Cost of Goods Sold Finished Goods Inventory To transfer finished goods to cost of goods sold Debit 4,000 6,600 4,400 4,000 2,200 Page 1 Credit 4,000 2,400 3,000 1,200 4,400 4,000 2,200
Transcribed Image Text:GENERAL JOURNAL Date 8-4-X5 8-8-X5 8-9-X5 8-10-X5 Raw Materials Inventory Accounts Payable To record purchase of raw materials Accounts Work in Process Raw Materials Inventory Salaries Payable Factory Overhead To transfer raw materials to production, record direct labor costs on job, and apply overhead at the predetermined rate Finished Goods Inventory Work in Process 8-10-X5 Cash Sales To transfer completed units to finished goods inventory To record sale of finished awning for $4,000 Cost of Goods Sold Finished Goods Inventory To transfer finished goods to cost of goods sold Debit 4,000 6,600 4,400 4,000 2,200 Page 1 Credit 4,000 2,400 3,000 1,200 4,400 4,000 2,200
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