Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2. Issued $15,000 in direct materials to the production department. 3. Purchased $11,500 of materials on account. 4. Issued $925 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $23,000, which were credited to Wages Payable. 8. Issued $1,325 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100. The following balances appeared in the accounts of Barker Products for September: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $ 33,200 6,150 33,500 Ending September: ? ? $ 30,500 54,600 Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2. Issued $15,000 in direct materials to the production department. 3. Purchased $11,500 of materials on account. 4. Issued $925 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $23,000, which were credited to Wages Payable. 8. Issued $1,325 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100. The following balances appeared in the accounts of Barker Products for September: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $ 33,200 6,150 33,500 Ending September: ? ? $ 30,500 54,600 Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 5E: Recording materials transactions Prepare a journal entry to record each of the following materials...

See similar textbooks

Similar questions

Required information Skip to question [The following information applies to the questions displayed below.] Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $100,100 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,300 Job 202 23,700 Total direct materials 72,000 Indirect materials 8,720 Total materials used $ 80,720 Time tickets show the following labor used for the month. Job 201 $ 39,300 Job 202 12,700 Total direct labor 52,000 Indirect labor 24,300 Total labor used $ 76,300 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,060 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 32,100 Rent on factory building (payable) 510 Factory…
Automation Co. has the following activity for the month of June: June 1, Work in Process Direct materials used Direct labor assigned to jobs Manufacturing overhead assigned to jobs 20,000 $ 22,000 $ 28,000 $ 26,000 Two jobs were finished during June, Job 142 and 143 costing $38,000 and $20,000, respectively. The journal entry to record the completion of the two jobs would include a debit/credit to Work in Process for how much? Indicate debit as a positive amount and a credit as a negative amount. Enter without commas or dollar signs, rounded to the nearest whole number.
Information on Kwon Manufacturing’s activities for its first month of operations follows: a. Purchased $101,100 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 49,300 Job 202 24,700 Total direct materials 74,000 Indirect materials 9,720 Total materials used $ 83,720 c. Time tickets show the following labor used for the month. Job 201 $ 40,300 Job 202 13,700 Total direct labor 54,000 Indirect labor 25,300 Total labor used $ 79,300 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $167,060 on credit. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,100 Rent on factory building (payable) 610 Factory utilities (payable) 910 Expired factory insurance 4,100 Total other factory overhead costs $…
Required information [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,500 of raw materials on credit. b. Materials requisitions show the following materials used for the month. $ 48,700 24,100 72,800 9,120 Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 81,920 c. Time tickets show the following labor used for the month. $ 39,700 13,100 Job 201 Job 202 Total direct labor 52,800 24,700 $ 77,500 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. (1) Sold Job 201 for $165,260 on credit. (2) Record cost of goods sold for Job 201. g. Incurred the following actual other overhead costs for the month. $ 32, 500 Depreciation of factory equipment Rent on factory building (payable) Factory…
a. Purchased raw materials on credit, $200,000. b. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 32,500 Job 138 19,200 Job 139 23,000 Job 140 7,200 Total direct materials 130,400 Indirect materials 19,500 Total materials used $ 149,900 c. Paid $15,750 cash to a computer consultant to reprogram factory equipment. d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,100 Job 137 10,500 Job 138 37,500 Job 139 39,200 Job 140 3,800 Total direct labor 103,100 Indirect labor 24,500 Total $ 127,600 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit…
Journal Entries, T-Accounts Lincoln Brothers Company makes jobs to customer order. During the month of May, the following occurred: a. Materials were purchased on account for $45,760. b. Materials totaling $40,880 were requisitioned for use in producing various jobs. c. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. d. Actual overhead of $8,860 was incurred and paid in cash. e. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. f. Completed jobs costing $59,000 were transferred to Finished Goods. g. Jobs costing $58,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of May 1 were: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Required: $1,300 3,400 2,640 1 more notification 1. Prepare the journal entries for the preceding events.
I NEED HELP WITH REQUIRED 2 PLEASE The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. Purchased $75,180 in materials on account. Issued $2,100 in supplies from the materials inventory to the production department. Paid for the materials purchased in transaction (1). Issued $35,700 in direct materials to the production department. Incurred wage costs of $58,800, which were debited to Payroll, a temporary account. Of this amount, $18,900 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $29,400 in fringe benefit costs, incurred as a result of the wages paid in (5). This $29,400 was debited to Payroll and credited to Fringe Benefits Payable Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing…
Review Problem for Chapters 1 and 2 UltraLift Corp. manufactures chain hoists. The raw materials inventories on hand on October 1 were as follows: The balances in the ledger accounts on October 1 were as follows: Transactions during October were as follows: a. Payroll recorded during the month: direct labor, 28,000; indirect labor, 4,800. b. Indirect materials purchased for cash, 1,000. c. Materials purchased on account: chain4,000 lb, 8,800; pulleys2,000 sets, 10,200; steel plates5,000 units, 3,000. d. Sales on account for the month, 126,375. e. Accounts receivable collected, 72,500. f. Materials used during October (FIFO costing): chain14,000 lb; pulleys4,400 sets; bolts and taps4,000 lb; steel plates3,800 units. g. Payroll paid, 32,800. h. Indirect materials issued to production in October, 650. i. Factory heat, light, and power costs for October, 3,000 (not yet paid). j. Office salaries paid, 6,000. k. Advertising paid, 2,000. l. Accounts payable paid, 33,750. m. Expired insuranceon office equipment, 100; on factory machinery, 300. n. Factory rent paid, 2,000. o. Depreciation on office equipment, 400; on office furniture, 180; on machinery, 1,200. p. Factory overhead charged to jobs, 11,950. q. Work in Process, October 31, 31,000. (Hint: The difference between the sum of the beginning balance in Work in Process plus the total charges to it during the period less the ending balance in Work in Process represents the cost of the goods completed during the period.) r. Cost of goods sold during the month, 84,250. Required: 1. Set up T-accounts and enter the balances as of October 1. 2. Prepare journal entries to record each of the previous transactions. 3. Post the journal entries to the accounts, setting up any new ledger accounts necessary. Only controlling accounts are to be maintained; however, show the calculation for the cost of materials used. 4. Prepare a statement of cost of goods manufactured for October. 5. Prepare an income statement. 6. Prepare a balance sheet showing the classifications of current assets, plant and equipment, current liabilities, and stockholders equity.
The Following events occurred during March for Ajax Company. Prepare a journal entry for each transaction. Materials were purchased on account for $5,429. Materials were requisitioned to begin work on Job C15 In the amount of $2,500. Direct labor expense for job C15 was $4,250. Actual overhead was incurred on account for $5,385. Factory overhead was charged w Job C15 at the rate of 200% direct labor. Job C15 was transferred to finished goods at $15,250. Job C15 was sold on account for $28,000.
The following events occurred during March for Ajax Company. Prepare a journal entry for each transaction. Materials were purchased on account for $35,429. Materials were requisitioned to begin work on Job C1S In the amount of $25,259. Direct labor expense for Job C15 was $24,129. Actual overhead was incurred on account of $32,852. Factory overhead was charged to Job C15 at the rate of 200% of direct labor. Job C15 was transferred to finished goods at $97,646. Job C15 was sold on account for $401,000.
JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Eto Manufacturing had the following transactions during the month: (a) Purchased raw materials on account, 70,000. (b) Issued direct materials to Job No. 300, 25,000. (c) Issued indirect materials to production, 10,000. (d) Paid biweekly payroll and charged direct labor to Job No. 300, 8,000. (e) Paid biweekly payroll and charged indirect labor to production, 3,000. (f) Issued direct materials to Job No. 301, 20,000. (g) Issued indirect materials to production, 4,000. (h) Paid miscellaneous factory overhead charges, 6,000. (i) Paid biweekly payroll and charged direct labor to Job No. 301, 10,000. (j) Paid biweekly payroll and charged indirect labor to production, 2,000. REQUIRED Prepare general journal entries for transactions (a) through (j).
Recording materials transactions Prepare a journal entry to record each of the following materials transactions: a. Total materials purchased on account during the month amounted to 200,000. b. Direct materials requisitioned for the month totaled 175,000. c. Indirect materials requisitioned during the month totaled 12,000. d. Direct materials returned to the storeroom from the factory amounted to 2,500. e. Total materials returned to vendor during the month amounted to 1,800. f. Payment during the month for materials purchased on account totaled 165,000.