To determine Prepare journal entries of Industries S. Explanation a. Prepare journal entry to record summarize the total manufacturing costs applied to production in June. Account titles and Explanation Debit Credit Work in process inventory $160,000 Direct materials $90,000 Direct labor $30,000 Manufacturing overhead 40,000 (To record cost assigned to production) Table (1) Work in process inventory is a current asset, and it is increased. Therefore, debit work in process inventory account for $160,000. Direct materials are a current asset, and it is decreased. Therefore, credit direct materials account for $90,000. Direct labor is a current asset, and it is decreased. Therefore, credit direct labor account for $30,000. Manufacturing overhead is a component of stockholders’ equity , and it is increased. Therefore, credit manufacturing overhead account for $40,000. b. Prepare journal entry to record transfer completed units from work in process to the finished goods warehouse in June. Account titles and Explanation Debit Credit Finished goods inventory $160,000 Work in process inventory $160,000 (To record transfer of 20,000 units completed units to finished) Table (2) Finished goods inventory is a current asset, and it is increased. Therefore, debit finished goods inventory account for $160,000. Work in process inventory is a current asset, and it is decreased. Therefore, credit work in process inventory account for $160,000. c. Prepare journal entries to record sale of 16,000 units manufactured during the period and related cost of goods sold. Account titles and Explanation Debit Credit Accounts receivable $320,000 Sales $320,000 (To record sales of 16,000 units @ $20 per unit) Table (3) Account receivable is a current asset, and it is increased...

18th Edition

ISBN: 9781260706307

Author: Jan Williams

Publisher: Mcgraw-hill Higher Education (us)

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Chapter 18, Problem 3E

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Prepare journal entries of Industries S.

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Financial Accounting

Ch. 18 - Prob. 1STQ Ch. 18 - 2. Which of the following businesses would most...Ch. 18 - 3. Nut House manufactures and sells jars of peanut...Ch. 18 - 4. Indicate which of the following phrases...Ch. 18 - 5. A production cost report contains which of the...Ch. 18 - 1. Why would a company use multiple cost...Ch. 18 - 2. What factors should be taken into account in...Ch. 18 - 3. Rodeo Drive Jewelers makes custom jewelry for...Ch. 18 - 4. Describe at least two products or production...Ch. 18 - 5. What are the four significant parts of the...

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