**Ajax Company March Transactions**Below are the recorded financial events for Ajax Company during March, with corresponding journal entries.**A. Materials Purchase on Account**- **Transaction:** Materials were purchased on account for $35,427.- **Journal Entry:** - Debit: Raw Materials Inventory $35,427 - Credit: Accounts Payable $35,427**B. Materials Requisitioned**- **Transaction:** Materials were requisitioned to begin work on Job C15 in the amount of $25,260.- **Journal Entry:** - Debit: Work in Process Inventory $25,260 - Credit: Raw Materials Inventory $25,260**C. Direct Labor Expense**- **Transaction:** Direct labor expense for Job C15 was $24,127.- **Journal Entry:** - Debit: Work in Process Inventory $24,127**D. Actual Overhead Incurred**- **Transaction:** Actual overhead was incurred on account of $32,851.- **Journal Entry:** - Debit: Work in Process Inventory $32,851 - Credit: Manufacturing Overhead $32,851**E. Application of Factory Overhead**- **Note:** No journal entry is provided for this transaction. Factory overhead was charged to Job C15 at the rate of 200% of direct labor.**F. Job C15 Completion**- **Note:** No journal entry is provided here. Job C15 was transferred to finished goods at $97,641.**G. Sale of Job C15**- **Note:** No journal entry is provided here. Job C15 was sold on account for $399,000.Prepare journal entries only where specified. If an amount box does not require an entry, leave it blank.**Graph/Diagram Explanation:**There are no graphs or diagrams in the image. The content purely consists of textual information relating to accounting journal entries. The image displays a section of an inventory accounting worksheet. Here is a transcription of the text and numbers:- **B. Work in Process Inventory** - Raw Materials Inventory: 25,260- **C. Work in Process Inventory** - Raw Materials Inventory: 24,127- **D. Work in Process Inventory** - Manufacturing Overhead: 32,851- **E.** - (Empty fields for input of additional data)- **F.** - (Empty fields for input of additional data)- **G. Cost of Goods Sold** - (Multiple empty fields for detailed entries)Note: The sections E, F, and G have placeholders indicating that further data is to be added by the user.At the bottom of the worksheet, there is a note: "All work saved."This document appears to delineate various inventory entries and placeholders for further financial data, likely to be filled out in a learning or simulation context.

Name: **Ajax Company March Transactions**Below are the recorded financial e
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Description: **Ajax Company March Transactions**Below are the recorded financial events for Ajax Company during March, with corresponding journal entries.**A. Materials Purchase on Account**- **Transaction:** Materials were purchased on account for $35,427.- **J

The journal entries follow the job costing process from the purchase of raw materials, allocation of…

Business

Accounting

The following events occurred during March for Ajax Company. A. Materials were purchased on account for $35,427. B. Materials were requisitioned to begin work on Job C15 in the amount of $25,260. C. Direct labor expense for Job C15 was $24,127. D. Actual overhead was incurred on account of $32,851. E. Factory overhead was charged to Job C15 at the rate of 200% of direct labor. F. Job C15 was transferred to finished goods at $97,641. G. Job C15 was sold on account for $399,000. Prepare a journal entry for each transaction. If an amount box does not require an entry, leave it blank.

The following events occurred during March for Ajax Company. A. Materials were purchased on account for $35,427. B. Materials were requisitioned to begin work on Job C15 in the amount of $25,260. C. Direct labor expense for Job C15 was $24,127. D. Actual overhead was incurred on account of $32,851. E. Factory overhead was charged to Job C15 at the rate of 200% of direct labor. F. Job C15 was transferred to finished goods at $97,641. G. Job C15 was sold on account for $399,000. Prepare a journal entry for each transaction. If an amount box does not require an entry, leave it blank.

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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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

**Ajax Company March Transactions**

Below are the recorded financial events for Ajax Company during March, with corresponding journal entries.

**A. Materials Purchase on Account**
- **Transaction:** Materials were purchased on account for $35,427.
- **Journal Entry:**
- Debit: Raw Materials Inventory $35,427
- Credit: Accounts Payable $35,427

**B. Materials Requisitioned**
- **Transaction:** Materials were requisitioned to begin work on Job C15 in the amount of $25,260.
- **Journal Entry:**
- Debit: Work in Process Inventory $25,260
- Credit: Raw Materials Inventory $25,260

**C. Direct Labor Expense**
- **Transaction:** Direct labor expense for Job C15 was $24,127.
- **Journal Entry:**
- Debit: Work in Process Inventory $24,127

**D. Actual Overhead Incurred**
- **Transaction:** Actual overhead was incurred on account of $32,851.
- **Journal Entry:**
- Debit: Work in Process Inventory $32,851
- Credit: Manufacturing Overhead $32,851

**E. Application of Factory Overhead**
- **Note:** No journal entry is provided for this transaction. Factory overhead was charged to Job C15 at the rate of 200% of direct labor.

**F. Job C15 Completion**
- **Note:** No journal entry is provided here. Job C15 was transferred to finished goods at $97,641.

**G. Sale of Job C15**
- **Note:** No journal entry is provided here. Job C15 was sold on account for $399,000.

Prepare journal entries only where specified. If an amount box does not require an entry, leave it blank.

**Graph/Diagram Explanation:**
There are no graphs or diagrams in the image. The content purely consists of textual information relating to accounting journal entries.

The image displays a section of an inventory accounting worksheet. Here is a transcription of the text and numbers:

- **B. Work in Process Inventory**
- Raw Materials Inventory: 25,260

- **C. Work in Process Inventory**
- Raw Materials Inventory: 24,127

- **D. Work in Process Inventory**
- Manufacturing Overhead: 32,851

- **E.**
- (Empty fields for input of additional data)

- **F.**
- (Empty fields for input of additional data)

- **G. Cost of Goods Sold**
- (Multiple empty fields for detailed entries)

Note: The sections E, F, and G have placeholders indicating that further data is to be added by the user.

At the bottom of the worksheet, there is a note: "All work saved."

This document appears to delineate various inventory entries and placeholders for further financial data, likely to be filled out in a learning or simulation context.

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