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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me
Transcribed Image Text:Required:
a. Journalize the transactions for August.
b. Post transactions to T-accounts for Raw Material Inventory, Work in Process Inventory,
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").
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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