urrent Attempt in Progress During January, its first month of operations, Ayayai Company accumulated the following manufacturing costs: raw materials purchased $5,400 on account, factory labor $6.700, and utilities payable $2,100. In January, requisitions of raw materials for production are as follows: Job 1 $960, Job 2 $1,200, Job 3 $790, and general factory use $680. Record raw materials used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Accumulated costs Direct materials used Indirect materials used Ending balance Raw Materials Inventory $ 5400 Manufacturing Costs Factory Labor 6700 Manufacturing Overhead $ 2100 Work in Proc

urrent Attempt in Progress During January, its first month of operations, Ayayai Company accumulated the following manufacturing costs: raw materials purchased $5,400 on account, factory labor $6.700, and utilities payable $2,100. In January, requisitions of raw materials for production are as follows: Job 1 $960, Job 2 $1,200, Job 3 $790, and general factory use $680. Record raw materials used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Accumulated costs Direct materials used Indirect materials used Ending balance Raw Materials Inventory $ 5400 Manufacturing Costs Factory Labor 6700 Manufacturing Overhead $ 2100 Work in Proc

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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Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling $40,880 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour. Actual overhead of $8,850 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $59,000 were transferred to Finished Goods. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were: Materials Inventory $1,300 Work-in-Process Inventory 3,400 Finished Goods Inventory 2,640 Required: Question Content Area 1. Prepare the journal entries for the preceding events. a. b. c.…
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