Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October. Direct materials used $226,000 $145,000 Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $200,500 $585,000 The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct labor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, (6) credit sales, and (7) cost of goods sold. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record direct labor used in production, but not yet paid. < Prev Next > ************ 4 of 5 185% www # G

Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October. Direct materials used $226,000 $145,000 Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $200,500 $585,000 The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct labor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, (6) credit sales, and (7) cost of goods sold. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record direct labor used in production, but not yet paid. < Prev Next > ************ 4 of 5 185% www # G

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Description: Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in thebagging department. All direct materials enter in the first process. The following describes production operations fo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Re - Tire produces bagged mulch from recycled tires. Production involves shredding tires and packaging the pieces in the Bagging department. All direct materials enter in the Shredding process. A predetermined overhead rate of 185% of direct labor costs is used in both departments. The following describes production operations for October. Direct materials used (Shredding) $ 224,000 Direct labor used (Shredding) 37, 800 Direct labor used (Bagging) 70, 200 Costs transferred from Shredding to Bagging 202,000 Costs transferred from Bagging to Finished Goods 596, 000 Sales (on credit) for the month total $450,000 and cost of goods sold for the month is $250,000. Prepare journal entries dated October 31 to record October production activities for (1) direct materials usage, (2) direct labor usage, (3) overhead applied, (4) costs transfer from Shredding to Bagging, (5) costs transfer from Bagging to finished goods, (6) credit sales, and (7) cost of goods sold.
Date + + + + + I + ī + ||| I General Journal Account/Explanation Page G2 PR Debit Credit