Required information [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,600 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 48,800 Job 202 24,200 Total direct materials 73,000 Indirect materials. 9,220 Total materials used $ 82,220 c. Time tickets show the following Job 201 $ Job 202 Total direct labor Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $165,560 on credit. g. Incurred the following actual other overhead costs for the month. $ 32,600 labor used for the month. 39,800 13,200 53,000 24,800 $ 77,800 Depreciation of factory equipment Rent on factory building (payable) Factory utilities (payable) Expired factory insurance Total other factory overhead costs No 1 Prepare journal entries to record the transactions reflected in items a through g. View transaction list View journal entry worksheet Transaction a. 560 860 3,600 $ 37,620 Raw materials inventory General Journal Debit Credit Ⓒ
Required information [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,600 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 48,800 Job 202 24,200 Total direct materials 73,000 Indirect materials. 9,220 Total materials used $ 82,220 c. Time tickets show the following Job 201 $ Job 202 Total direct labor Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $165,560 on credit. g. Incurred the following actual other overhead costs for the month. $ 32,600 labor used for the month. 39,800 13,200 53,000 24,800 $ 77,800 Depreciation of factory equipment Rent on factory building (payable) Factory utilities (payable) Expired factory insurance Total other factory overhead costs No 1 Prepare journal entries to record the transactions reflected in items a through g. View transaction list View journal entry worksheet Transaction a. 560 860 3,600 $ 37,620 Raw materials inventory General Journal Debit Credit Ⓒ
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please read the picture below and complete.
Transcribed Image Text:**Required Information**
*The following information applies to the questions displayed below.*
Information on Kwon Manufacturing’s activities for its first month of operations follows:
**a.** Purchased $100,600 of raw materials on credit.
**b.** Materials requisitions show the following materials used for the month.
| | |
|------------------|-------|
| Job 201 | $ 48,800 |
| Job 202 | 24,200 |
| **Total direct materials** | $ 73,000 |
| Indirect materials | 9,220 |
| **Total materials used** | $ 82,220 |
**c.** Time tickets show the following labor used for the month.
| | |
|---------------|--------|
| Job 201 | $ 39,800 |
| Job 202 | 13,200 |
| **Total direct labor** | 53,000 |
| Indirect labor | 24,800 |
| **Total labor used** | $ 77,800 |
**d.** Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost.
**e.** Transferred Job 201 to Finished Goods Inventory.
**f.** Sold Job 201 for $165,560 on credit.
**g.** Incurred the following actual other overhead costs for the month.
| | |
|------------------------------|--------|
| Depreciation of factory equipment | $ 32,600 |
| Rent on factory building (payable) | 560 |
| Factory utilities (payable) | 860 |
| Expired factory insurance | 3,600 |
| **Total other factory overhead costs** | $ 37,620 |
---
**Prepare journal entries to record the transactions reflected in items a through g.**
| No | Transaction | General Journal | Debit | Credit |
|----|-----------------|---------------------------|------------|-------------|
| 1 | a. | Raw materials inventory | | |
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