Raw Material (direct and indirect) Inventory $25,300 Work in Process Inventory 9,000 Finished Goods Inventory 20,000 During August, the company incurred the following factory costs: 1. Purchased $200,000 of raw material on account. 2. Issued $185;000 of raw material to production, of which $134,000 was for direct materials. 3. Accrued $98,000 in factory payroll costs; $62,000 was for direct labor and the rest was for supervisors' salaries. 4. Accrued $10,000 of utility costs; of this amount, $2,600 was fixed. 5. Accrued $5,000 of property taxes on the factory.
Raw Material (direct and indirect) Inventory $25,300 Work in Process Inventory 9,000 Finished Goods Inventory 20,000 During August, the company incurred the following factory costs: 1. Purchased $200,000 of raw material on account. 2. Issued $185;000 of raw material to production, of which $134,000 was for direct materials. 3. Accrued $98,000 in factory payroll costs; $62,000 was for direct labor and the rest was for supervisors' salaries. 4. Accrued $10,000 of utility costs; of this amount, $2,600 was fixed. 5. Accrued $5,000 of property taxes on the factory.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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![Required:
a. Journalize the transactions for August.
b. Post transactions to T-accounts for Raw Material Inventory, Work in Process Inventory,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ddfa9f1-b4fa-48f8-b7dd-1ce228998892%2Fd7fea80e-a227-4856-aac9-55526be3b971%2Ffkj5qin_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
a. Journalize the transactions for August.
b. Post transactions to T-accounts for Raw Material Inventory, Work in Process Inventory,
![HECTOR Company had the following account balances as of August 1, 2021:
Raw Material (direct and indirect) Inventory $25,300
Work in Process Inventory 9,000
Finished Goods Inventory 20,000
During August, the company incurred the following factory costs:
1. Purchased $200,000 of raw material on account.
2. Issued $185;000 of raw material to production, of which $134,000 was for direct materials.
3. Accrued $98,000 in factory payroll costs; $62,000 was for direct labor and the rest was
for supervisors' salaries.
4. Accrued $10,000 of utility costs; of this amount, $2,600 was fixed.
5. Accrued $5,000 of property taxes on the factory.
6. Recorded the expiration of $2,600 of prepaid insurance on factory equipment.
7. Recorded $45,000 of straight-line depreciation on factory equipment.
7. Recorded $45,000 of straight-line depreciation on factory equipment.
8. Applied actual overhead to Work in Process Inventory.
9. Transferred goods costing $310,000 to Finished Goods Inventory.
10. Recorded total sales of $750,000; of these, $500,000 were on account.
11. Recorded cost of goods sold of $330,000.
12. Recorded selling and administrative costs of $280,000 (credit "Various accounts").](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ddfa9f1-b4fa-48f8-b7dd-1ce228998892%2Fd7fea80e-a227-4856-aac9-55526be3b971%2Fwhm6lum_processed.jpeg&w=3840&q=75)
Transcribed Image Text:HECTOR Company had the following account balances as of August 1, 2021:
Raw Material (direct and indirect) Inventory $25,300
Work in Process Inventory 9,000
Finished Goods Inventory 20,000
During August, the company incurred the following factory costs:
1. Purchased $200,000 of raw material on account.
2. Issued $185;000 of raw material to production, of which $134,000 was for direct materials.
3. Accrued $98,000 in factory payroll costs; $62,000 was for direct labor and the rest was
for supervisors' salaries.
4. Accrued $10,000 of utility costs; of this amount, $2,600 was fixed.
5. Accrued $5,000 of property taxes on the factory.
6. Recorded the expiration of $2,600 of prepaid insurance on factory equipment.
7. Recorded $45,000 of straight-line depreciation on factory equipment.
7. Recorded $45,000 of straight-line depreciation on factory equipment.
8. Applied actual overhead to Work in Process Inventory.
9. Transferred goods costing $310,000 to Finished Goods Inventory.
10. Recorded total sales of $750,000; of these, $500,000 were on account.
11. Recorded cost of goods sold of $330,000.
12. Recorded selling and administrative costs of $280,000 (credit "Various accounts").
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