Journal entriesSummer Shade installs awnings on residential and commercial structures. The company had the following transactions for February:Purchased $790,000 of building (raw) material on account.Issued $570,000 of building (direct) material to jobs.Issued $120,000 of building (indirect) material for use on jobs.Accrued wages payable of $874,000, of which $794,000 could be traced directly to particular jobs.Applied overhead to jobs on the basis of 55 percent of direct labor cost.Completed jobs costing $1,046,000. For these jobs, revenues of $1,342,000 were collected. Journalize the above transactions.Note: Record any multiple debits or any multiple credits in alphabetical order by account name.12345678AccountTo record raw materials purchased on accountTo record the direct materials issuedTo record the indirect materials issuedTo record labor costsTo record applied overheadTo record completed jobsTo record cost of salesTo record sales་་DebitCredit

Step 1:Journal entries are used to record transaction in chronological order under double entry…

Journalize the above transactions. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. 1 2 3 4 5 6 7 8 Account To record raw materials purchased on account To record the direct materials issued To record the indirect materials issued To record labor costs To record applied overhead To record completed jobs To record cost of sales To record sales ་ ་ Debit Credit

Journalize the above transactions. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. 1 2 3 4 5 6 7 8 Account To record raw materials purchased on account To record the direct materials issued To record the indirect materials issued To record labor costs To record applied overhead To record completed jobs To record cost of sales To record sales ་ ་ Debit Credit

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 21Q

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[The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 48,000 9,000 65,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 43,000 20,700 34,900 $ 179,000 250,000 12,000 57,500 114,500
2. Prepare journal entries to record the events and transactions 1-11 1. Record raw material purchases on credit 2. Record the requisition of direct materials 3. Record the indirect materials 4. Record the entry for direct labor, paid in cash 5. Record the entry for indirect labor, paid in cash 6. Record the entry to apply overhead to jobs 136, 138 and 139 7. Record the transfer of completed jobs 136, 138 and 139 to finished goods 8. Record the entry for sales on account for jobs 136 and 138 9. Record the entry for the cost of jobs 136 and 138 10. Record the entry for the actual overhead costs incurred 11. Record the entry to apply overhead to jobs 137 and 140 (work in process)
Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. Materials purchased on account $194,300, and factory wages incurred $91,000 2 Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 $36,540 $18,800 A21 45,120 22,700 A22 36,200 15,700 A23 40,470 25,400 General factory use 5,470 8,400 $163.800 $91.000 3. Manufacturing overhead costs incurred on account $54,100. 4. Depreciation on factory equipment $16,450. 5. Depreciation on the company's office building was $15,300 6. Manufacturing overhead rate is 87% of direct labor cost 7. Jobs completed during the quarter: A20, A21. and A23 Prepare a schedule showing the Individual cost elements and totalcost for each job in Item 7 Direct Direct Manufacturing Overhead Job Materials Labor Total A20 A21 A23
Can you help me with the last 2 journal entries? They are recording charges to Work-In-Process and the Transfer of Job 87.
Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system. (a) Purchased raw materials for $50,000 on account. (b) Raw materials requisitioned for production were: Direct materials Mixing department $20,000 Finishing department 14,000 (c) Incurred labor costs of $74,000. (d) Factory labor used: Mixing department $44,000 Finishing department 30,000 (e) Manufacturing overhead is applied to the product based on machine hours used in each department: Mixing department-400 machine hours at $30 per machine hour. Finishing department-500 machine hours at $20 per machine hour. in Units costing $56,000 were completed in the Mixing Department and were transferred to the Finishing Department. (g) Units costing $70,000 were completed in the Finishing Department and were transferred to finished goods. Finished goods costing $40,000 were sold on account for $55,000,
Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledger of materials inventory for May is as follows: a. Complete the materials isuances and balances for the materials subsidiary ledger under FIFO. Received Issued Balance Receiving Materials Unit Unit Report Quantity Requisition Quantity Amount Date Quantity Amount Price price Number Number May 1 260 $8 $2,080 25 $10 260 V 2,080 V 180 May 4 180 V 10 V 1,800 103 290 May 10 10 V 31 120 12 May 21 10 V 12 V 116 170 May 27 12 Feedback V Check My Work a. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity. b. Determine the materials inventory balance at the end of May. Feedback V Check My Work b. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity.
Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem.a. preparing the weekly payroll for manufacturing personnelb. releasing raw materials for use in the manufacturing cyclec. recording the receipt of payment for goods soldd. recording the order placed by a customere. ordering raw materialsf. determining the amount of raw materials to order
INFO FOR QUESTIONS IN IMAGE 1. Compute the underapplied or overapplied overhead. [Underapplied OR Overapplied] [$ ] 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. (Note: Enter debits before credits.) Event General Journal Debit Credit 1 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. Record the allocation of the underapplied/overapplied overhead to various accounts. (Note: Enter debits before credits.) Event General Journal Debit Credit 1 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to…
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
[The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 48,000 9,000 65,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 43,000 20,700 34,900 $ 179,000 250,000 12,000 57,500 114,500
Prepare a T-account for each account on the company’s balance sheet, and enter the beginning balances. Make entries directly into the T-accounts for the transactions given above. Create new T-accounts as needed. Determine an ending balance for each T-account. Was manufacturing overhead underapplied or overapplied for the year? Assume that the company allocates any overhead balance among the Work in Process, Finished Goods, and Cost of Goods Sold accounts, using the overall balances in each account. Prepare a journal entry to show the allocation. (Round allocation percentages to one decimal place.) Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the T-accounts.)
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