Question

THE Company entered into the following transactions
during 2022:

a. direct materials purchased on account totaled
   $27,000

b. paid salaries totaling $40,000; $12,000 paid to
   assembly line workers; $18,000 paid to the CEO;
   $10,000 paid to the shop janitors

c. direct materials used totaled $19,000

d. depreciation on factory equipment totaled $7,000

e. overhead was applied to production at a rate of
   75% of direct labor cost

f. utility costs totaled $10,000; 30% was related to
   the factory and 70% was related to the sales
   building

g. units costing $28,000 were completed

h. depreciation on sales equipment totaled $4,000

i. units costing $15,000 were sold at a total
   selling price of $61,000

Assume there were no beginning inventories of any
type at January 1, 2022.

Part A.) The journal entry to record transaction (h) would
include a debit to:

Group of answer choices

depreciation expense

equipment

manufacturing overhead

work in process inventory

accumulated depreciation

more than one of the above choices could be correct

none of the above choices are correct

Part B.) The journal entry to record transaction (e) would include a debit to:

Group of answer choices

direct labor

finished goods inventory

manufacturing overhead

work in process inventory

more than one of the above choices could be correct

none of the above choices are correct

Part C.) Calculate THE Company's cost of goods manufactured for 2022.

Answer 1

A.

The journal entry to record transaction (h) would include a debit to "Depreciation expense".

Becasue it depreciation on sales equipment.

B.

The journal entry to record transaction (e) would include a debit to "Work in process inventory".

Because its overhead applied which is a production cost.

C.

Direct material used in production	$19,000
Direct Labor (wages to assembly line workers)	$12,000
Factory Overhead applied (12000*75%)	$9,000
Total Manufacturing Costs incurred during April		$40,000
Less: Work in Process inventory, April 30		$12,000
Cost of goods manufactured for 2022		$28,000