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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education