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Date Account Titles and Explanation Debit Credit

Date Account Titles and Explanation Debit Credit

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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Date Account Titles and Explanation Debit Credit (To record factory labor costs) (To assign factory labor to jobs and overhead) (To apply overhead to jobs)
Transcribed Image Text:Date Account Titles and Explanation Debit Credit (To record factory labor costs) (To assign factory labor to jobs and overhead) (To apply overhead to jobs)
Wildhorse Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $20,000 on account. 8 Raw materials requisitioned by production: Direct materials $8,000 Indirect 1,000 materials 15 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. 25 Incurred $88,000 of factory labor. 25 Time tickets indicated the following: (7,000 hrs x $10 per Direct Labor $70,000 hr) (3,000 hrs x $6 per Indirect Labor 18,000 hr) $88,000 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $5 per direct labor hour worked. 28 Goods costing $18,150 were completed in the factory and were transferred to finished goods inventory. 30 Goods costing $15,150 were sold for $20,150 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
Transcribed Image Text:Wildhorse Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $20,000 on account. 8 Raw materials requisitioned by production: Direct materials $8,000 Indirect 1,000 materials 15 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. 25 Incurred $88,000 of factory labor. 25 Time tickets indicated the following: (7,000 hrs x $10 per Direct Labor $70,000 hr) (3,000 hrs x $6 per Indirect Labor 18,000 hr) $88,000 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $5 per direct labor hour worked. 28 Goods costing $18,150 were completed in the factory and were transferred to finished goods inventory. 30 Goods costing $15,150 were sold for $20,150 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
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