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Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June June 1 25 25 25 28 30 30 1 8 8 15 15 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. Goods costing $18,000 were completed in the factory and were transferred to finished goods. B Goods costing $15,000 were sold for $20,000 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) 25 Date Account Titles and Explanation 25 Purchased raw materials for $20,000 on account. Raw materials requisitioned by production: 28 30 $8,000 1,000 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. Incurred $108,000 of factory labor. Time tickets indicated the following: Direct materials Indirect materials Direct Labor Indirect Labor (Purchase of raw materials on account) (To assign materials to jobs and overhead) (To record payment of factory utilities and repairs) (To record factory labor costs) (To assign factory labor to jobs and overhead) (To record sales) (To apply overhead to jobs) (7,000 hrs x $12 per hr) (3,000 hrs $8 per hr) (To record completion of production) (To record cost of goods sold) $84,000 24,000 $108,000 Debit Credit

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June June 1 25 25 25 28 30 30 1 8 8 15 15 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. Goods costing $18,000 were completed in the factory and were transferred to finished goods. B Goods costing $15,000 were sold for $20,000 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) 25 Date Account Titles and Explanation 25 Purchased raw materials for $20,000 on account. Raw materials requisitioned by production: 28 30 $8,000 1,000 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. Incurred $108,000 of factory labor. Time tickets indicated the following: Direct materials Indirect materials Direct Labor Indirect Labor (Purchase of raw materials on account) (To assign materials to jobs and overhead) (To record payment of factory utilities and repairs) (To record factory labor costs) (To assign factory labor to jobs and overhead) (To record sales) (To apply overhead to jobs) (7,000 hrs x $12 per hr) (3,000 hrs $8 per hr) (To record completion of production) (To record cost of goods sold) $84,000 24,000 $108,000 Debit Credit

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business
Section: Chapter Questions
Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...
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Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June 1 25 June 1 Purchased raw materials for $20,000 on account. Raw materials requisitioned by production: 25 25 28 30 30 8 8 15 25 Date Account Titles and Explanation 15 25 25 28 3 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) 30 Direct materials Indirect materials Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. Incurred $108,000 of factory labor. Time tickets indicated the following: Direct Labor Indirect Labor (Purchase of raw materials on account) (To assign materials to jobs and overhead) Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. Goods costing $18,000 were completed in the factory and were transferred to finished goods. Goods costing $15,000 were sold for $20,000 on account. (To record payment of factory utilities and repairs) (To record factory labor costs) (To assign factory labor to jobs and overhead) (7,000 hrs x $12 per hr) (3,000 hrs x $8 per hr) (To apply overhead to jobs) (To record completion of production) (To record sales) $8,000 (To record cost of goods sold) . Debit 1,000 $84,000 24,000 $108,000 Credit
Transcribed Image Text:Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June 1 25 June 1 Purchased raw materials for $20,000 on account. Raw materials requisitioned by production: 25 25 28 30 30 8 8 15 25 Date Account Titles and Explanation 15 25 25 28 3 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) 30 Direct materials Indirect materials Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. Incurred $108,000 of factory labor. Time tickets indicated the following: Direct Labor Indirect Labor (Purchase of raw materials on account) (To assign materials to jobs and overhead) Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. Goods costing $18,000 were completed in the factory and were transferred to finished goods. Goods costing $15,000 were sold for $20,000 on account. (To record payment of factory utilities and repairs) (To record factory labor costs) (To assign factory labor to jobs and overhead) (7,000 hrs x $12 per hr) (3,000 hrs x $8 per hr) (To apply overhead to jobs) (To record completion of production) (To record sales) $8,000 (To record cost of goods sold) . Debit 1,000 $84,000 24,000 $108,000 Credit
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