a. Purchased raw materials on account for $121,700. b. Issued $114,000 in raw materials to production ($20,800 were not traceable to specific jobs). c. Incurred $115,160 in direct labor costs (14,395 hours) and $62,000 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $23,300 (paid in cash); depreciation on equipment $18,200; custodial supplies $7,400 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $74,600; sales commissions $86,900. f. Applied manufacturing overhead to jobs in process at a rate of $10 per direct labor hour. g. Completed jobs costing a total of $343,200. h. Sold jobs for $425,500 on account. The cost of the jobs was $340,700. 1. Closed the Manufacturing Overhead account balance. Required: Prepare the journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet 1 2 Event a 3 Note: Enter debits before credits. Record purchase of raw material on account. 4 5 General Journal 6 7 + 8 9 10 Debit Credit >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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a. Purchased raw materials on account for $121,700.
b. Issued $114,000 in raw materials to production ($20,800 were not traceable to specific jobs).
c. Incurred $115,160 in direct labor costs (14,395 hours) and $62,000 in supervision costs (paid in cash).
d. Incurred the following additional manufacturing overhead costs: factory lease $23,300 (paid in cash); depreciation on
equipment $18,200; custodial supplies $7,400 (paid in cash).
e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $74,600; sales commissions $86,900.
f. Applied manufacturing overhead to jobs in process at a rate of $10 per direct labor hour.
g. Completed jobs costing a total of $343,200.
h. Sold jobs for $425,500 on account. The cost of the jobs was $340,700.
i. Closed the Manufacturing Overhead account balance.
Required:
Prepare the journal entries to record these transactions.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
View transaction list
Journal entry worksheet
1
2
Event
a
3
Note: Enter debits before credits.
Record purchase of raw material on account.
4
5
General Journal
6
7
8
Debit
9
10
Credit
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Transcribed Image Text:a. Purchased raw materials on account for $121,700. b. Issued $114,000 in raw materials to production ($20,800 were not traceable to specific jobs). c. Incurred $115,160 in direct labor costs (14,395 hours) and $62,000 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $23,300 (paid in cash); depreciation on equipment $18,200; custodial supplies $7,400 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $74,600; sales commissions $86,900. f. Applied manufacturing overhead to jobs in process at a rate of $10 per direct labor hour. g. Completed jobs costing a total of $343,200. h. Sold jobs for $425,500 on account. The cost of the jobs was $340,700. i. Closed the Manufacturing Overhead account balance. Required: Prepare the journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet 1 2 Event a 3 Note: Enter debits before credits. Record purchase of raw material on account. 4 5 General Journal 6 7 8 Debit 9 10 Credit < Prev > 2 of 2 www www Next >
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