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Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: O Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. O Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. O Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: O Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. O Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. O Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
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Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. O Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.
Transcribed Image Text:Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000. O Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. O Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.
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