b. Incurred manufacturing wages of $11,000, 75% of which was direct labor and 25% of which was indirect labor. Date Accounts Debit Credit b. c. Purchased raw materials on account, $23,000. Date Accounts Debit Credit c. d. Used in production: direct materials, $7,500; indirect materials, $2,000. Date Accounts Debit Credit d. e. Recorded manufacturing overhead: depreciation on plant, $18,000; plant insurance (previously paid), $1,900; plant property tax, $4,200 (credit Property Tax Payable). Date Accounts Debit Credit e. f. Allocated manufacturing overhead to jobs, 160% of direct labor costs. Date Accounts Debit Credit f. g. Completed production on jobs with costs of $34,000. Date Accounts Debit Credit g. h. Sold inventory on account, $22,000; cost of goods sold, $14,000. Begin by recording the revenue from the sales on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step. Date Accounts Debit Credit h. Now record the expense related to the sale. Date Accounts Debit Credit h. i. Adjusted for overallocated or underallocated overhead. Date Accounts Debit Credit i.

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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b. Incurred manufacturing wages of

$11,000,

75%

of which was direct labor and

25%

of which was indirect labor.

Date

Accounts

Debit

Credit

c. Purchased raw materials on account,

$23,000.

Date	Accounts	Debit	Credit
c.

d. Used in production: direct materials,

$7,500;

indirect materials,

$2,000.

Date	Accounts	Debit	Credit
d.

e. Recorded manufacturing overhead: depreciation on plant,

$18,000;

plant insurance (previously paid),

$1,900;

plant property tax,

$4,200

(credit Property Tax Payable).

Date	Accounts	Debit	Credit
e.

f. Allocated manufacturing overhead to jobs,

160%

of direct labor costs.

Date	Accounts	Debit	Credit
f.

g. Completed production on jobs with costs of

$34,000.

Date	Accounts	Debit	Credit
g.

h. Sold inventory on account,

$22,000;

cost of goods sold,

$14,000.

Begin by recording the revenue from the sales on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step.

Date	Accounts	Debit	Credit
h.

Now record the expense related to the sale.

Date	Accounts	Debit	Credit
h.

i. Adjusted for overallocated or underallocated overhead.

Date	Accounts	Debit	Credit
i.

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