## Journalizing Transactions for Production DepartmentsA firm produces its products through a continuous process that involves three production departments (1 through 3). The following selected transactions related to production during August need to be journalized. If an amount box does not require an entry, please leave it blank.### Transactions:**a. Materials purchased on account, $120,000.****Journal Entry:**- Debit: [Select Account] $120,000- Credit: [Select Account] $120,000**b. Material requisitioned for use in Department 1, $125,700, of which $124,200 entered directly into the product.****Journal Entry:**- Debit: [Select Account] $125,700- Credit: [Select Account] $125,700**c. Labor cost incurred in Department 1, $195,400, of which $174,000 was used directly in the manufacture of the product.****Journal Entry:**- Debit: [Select Account] $195,400- Credit: [Select Account] $195,400**d. Factory overhead costs for Department 1 incurred on account, $54,700.****Journal Entry:**- Debit: [Select Account] $54,700- Credit: [Select Account] $54,700### Graphs and Diagrams:There are no graphs or diagrams included in this material. The material strictly involves fields with drop-down lists for account selection and blank fields for entering monetary amounts associated with each journal entry. ---This instructional aid is designed for educational purposes to assist in understanding the proper journalization of costs associated with production departments in a manufacturing firm. ### Overhead Costs and Transfers for Department 1#### d. Factory Overhead Costs**Description:** Factory overhead costs for Department 1 incurred on account **Amount:** $54,700 **Accounting Entry:**- [Dropdown for selecting Debit or Credit]- [Input field for amount]#### e. Machinery Depreciation**Description:** Depreciation on machinery in Department 1 **Amount:** $29,200 **Accounting Entry:**- [Dropdown for selecting Debit or Credit]- [Input field for amount]#### f. Prepaid Insurance Expiration**Description:** Expiration of prepaid insurance chargeable to Department 1 **Amount:** $7,000 **Accounting Entry:**- [Dropdown for selecting Debit or Credit]- [Input field for amount]#### g. Factory Overhead Applied**Description:** Factory overhead applied to production in Department 1 **Amount:** $106,300 **Accounting Entry:**- [Dropdown for selecting Debit or Credit]- [Input field for amount]#### h. Output Transfer**Description:** Output of Department 1 transferred to Department 2 **Amount:** $362,700 **Accounting Entry:**- [Dropdown for selecting Debit or Credit]- [Input field for amount]

Answered: A firm produces its products by a…

A firm produces its products by a continuous process involving three production departments, 1 through 3. Journalize the following selected transactions related to production during August:

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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