Sunland Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $18,800 on account. 8 Raw materials requisitioned by production: 15 25 25 25 28 30 Direct materials Indirect materials Time tickets indicated the following: Paid factory utilities, $1,974 and repairs for factory equipment, $7,520. Incurred $128,000 of factory labor. Direct Labor Indirect Labor (7,000 hrs x $14 per hr) $7,520 (3,000 hrs x $10 per hr) 940 $98,000 30,000 $128,000 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked. Goods costing $18,800 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,800 were sold for $20,800 on account.
Sunland Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $18,800 on account. 8 Raw materials requisitioned by production: 15 25 25 25 28 30 Direct materials Indirect materials Time tickets indicated the following: Paid factory utilities, $1,974 and repairs for factory equipment, $7,520. Incurred $128,000 of factory labor. Direct Labor Indirect Labor (7,000 hrs x $14 per hr) $7,520 (3,000 hrs x $10 per hr) 940 $98,000 30,000 $128,000 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked. Goods costing $18,800 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,800 were sold for $20,800 on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the
problem.)
Date
1
Account Titles and Explanation
(To record factory labor costs)
Debit
Credit
Transcribed Image Text:Sunland Manufacturing Company uses a job order cost system and keeps perpetual inventory records.
June 1 Purchased raw materials for $18,800 on account.
Raw materials requisitioned by production:
Direct materials
Indirect
8
15
25
25
25
28
30
materials
Direct Labor
Paid factory utilities, $1,974 and repairs for factory equipment, $7,520.
Incurred $128,000 of factory labor.
Time tickets indicated the following:
Indirect Labor
(7,000 hrs x $14 per
hr)
$7,520
(3,000 hrs x $10 per
hr)
940
$98,000
30,000
$128,000
Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor
hour worked.
Goods costing $18,800 were completed in the factory and were transferred to finished goods inventory.
Goods costing $15,800 were sold for $20,800 on account.
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