The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. Purchased $55,400 in materials on account. Issued $3,200 in supplies from the materials inventory to the production department. Paid for the materials purchased in transaction (1). Issued $27,200 in direct materials to the production department. Incurred wage costs of $59,000, which were debited to Payroll, a temporary account. Of this amount, $15,200 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $43,800 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $27,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $27,000 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,100. Applied overhead on the basis of 165 percent of direct labor costs. Recognized depreciation of $18,950 on manufacturing property, plant, and equipment. Required: a. Prepare journal entries to record these transactions. Beginning Ending Materials Inventory $ 58,125 — Work-in-Process Inventory 14,925 — Finished Goods Inventory 63,950 $ 53,200 Cost of Goods Sold — 107,275 Prepare journal entries to record these transactions. A Record material purchases of $55,400 on account. B Record issue of $3,200 supplies of material to production department. C Record payment made for $55,400 purchase on account. D Record issue of $27,200 direct material to production department. E Record wage cost incurred $59,000 of which $15,200 was payable as taxes. F Record entry to recognize fringe benefit cost of $27,000. G Record payroll cost of which 60% represents direct labor, 30% indirect manufacturing labor and 10% administrative and marketing costs. H Record payment of $34,100 for utilities, maintenance etc. I Record application of manufacturing overhead at 165% of direct labor cost. J Record depreciation of $18,950 on manufacturing plant and equipment.

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. Purchased $55,400 in materials on account. Issued $3,200 in supplies from the materials inventory to the production department. Paid for the materials purchased in transaction (1). Issued $27,200 in direct materials to the production department. Incurred wage costs of $59,000, which were debited to Payroll, a temporary account. Of this amount, $15,200 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $43,800 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $27,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $27,000 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,100. Applied overhead on the basis of 165 percent of direct labor costs. Recognized depreciation of $18,950 on manufacturing property, plant, and equipment. Required: a. Prepare journal entries to record these transactions. Beginning Ending Materials Inventory $ 58,125 — Work-in-Process Inventory 14,925 — Finished Goods Inventory 63,950 $ 53,200 Cost of Goods Sold — 107,275 Prepare journal entries to record these transactions. A Record material purchases of $55,400 on account. B Record issue of $3,200 supplies of material to production department. C Record payment made for $55,400 purchase on account. D Record issue of $27,200 direct material to production department. E Record wage cost incurred $59,000 of which $15,200 was payable as taxes. F Record entry to recognize fringe benefit cost of $27,000. G Record payroll cost of which 60% represents direct labor, 30% indirect manufacturing labor and 10% administrative and marketing costs. H Record payment of $34,100 for utilities, maintenance etc. I Record application of manufacturing overhead at 165% of direct labor cost. J Record depreciation of $18,950 on manufacturing plant and equipment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Problem 7-58 (Algo) Tracing Costs in a Job Company (LO 7-2, 3)

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing.

Purchased $55,400 in materials on account.
Issued $3,200 in supplies from the materials inventory to the production department.
Paid for the materials purchased in transaction (1).
Issued $27,200 in direct materials to the production department.
Incurred wage costs of $59,000, which were debited to Payroll, a temporary account. Of this amount, $15,200 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $43,800 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
Recognized $27,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $27,000 was debited to Payroll and credited to Fringe Benefits Payable.
Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,100.
Applied overhead on the basis of 165 percent of direct labor costs.
Recognized depreciation of $18,950 on manufacturing property, plant, and equipment.

Required:

a. Prepare journal entries to record these transactions.

	Beginning	Ending
Materials Inventory	$	58,125		—
Work-in-Process Inventory		14,925		—
Finished Goods Inventory		63,950	$	53,200
Cost of Goods Sold		—		107,275

Prepare journal entries to record these transactions.

A

Record material purchases of $55,400 on account.
B

Record issue of $3,200 supplies of material to production department.
C

Record payment made for $55,400 purchase on account.
D

Record issue of $27,200 direct material to production department.
E

Record wage cost incurred $59,000 of which $15,200 was payable as taxes.
F

Record entry to recognize fringe benefit cost of $27,000.
G

Record payroll cost of which 60% represents direct labor, 30% indirect manufacturing labor and 10% administrative and marketing costs.
H

Record payment of $34,100 for utilities, maintenance etc.
I

Record application of manufacturing overhead at 165% of direct labor cost.
J

Record depreciation of $18,950 on manufacturing plant and equipment.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here