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.
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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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