In accounting there are two terms one is Debit and second is credit. Revenue in books can only booked if certain conditions are fulfilled. It can’t be booked if we receive cash advance from our client. Cash advance received from client will be shown as liability and not as income. To State: Whetherthe bookkeeper prepared the correct journal entry or not

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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

Answer 1

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Chapter 3, Problem 3.7DC

1.

To determine

Concept Introduction:

In accounting there are two terms one is Debit and second is credit. Revenue in books can only booked if certain conditions are fulfilled. It can’t be booked if we receive cash advance from our client. Cash advance received from client will be shown as liability and not as income.

To State:Whetherthe bookkeeper prepared the correct journal entry or not

2.

To determine

Concept Introduction:

In accounting, there are two terms.One is debit and second is credit. Revenue in books can only booked if certain conditions are fulfilled. It can’t be booked if we receive cash advance from our client. Cash advance received from client will be shown as liability and not as income.

To State: The duties and responsibility of controller.

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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

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