Question

PART B – Journal Entries:  Prepare journal entries for the month of March to record the below...

PART B – Journal Entries:  Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry).

  1. Raw materials purchases (on credit).  Assume the firm purchased $282,000 worth of raw materials in March.
  2. Direct materials used in production:  Mixing Department: $250,000;  Packaging Department: $16,500.
  3. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit):  Mixing Department: $60,000;  Packaging Department:  $31,800.
  4. Overhead costs applied:  Mixing Department: $84,000;  Packaging Department:  $44,520.
  5. Actual Indirect materials used:  $16,200.
  6. Actual Indirect labor used (assume did not pay Cash, use the ‘Factory Wages Payable’ account for the credit):  $23,700.
  7. Actual other overhead costs incurred:  $88,750 (credit the ‘Cash’ account)
  8. Transfer of costs of units transferred out from the Mixing Department to the Packaging Department (amount calculated in A.3.a. above).
  9. Transfer of costs of completed units transferred out from the Packaging Department to Finished Goods Inventory.  Assume the costs of these finished goods transferred out from the Packaging Department to Finished Goods Inventory during March was $194,200.
  10. Transfer of costs from Finished Goods Inventory to COGS.  Assume the costs of the units sold transferred from Finished Goods to COGS was $119,100.
  11. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material).

Homework Answers

Answer #1

Journal Entries for the month of march:

Particulars Debit ($) Credit($)
Raw Material 282,000
- Accounts Payable 282,000
To record purchase of raw material
Mixing Department-RM 250,000
Packaging Department-RM 16,500
- Raw material 266,500
To record material transferred to mixing and packaging department
Direct Labour-mixing 60,000
Direct Labour-packaging 31,800
- Factory wages payable account 91,800
To record the direct labour
Indirect Material 16,200
- cash 16,200
To record indirect material used
Indirect labour 23,700
- Factory wages payable 23,700
To record indirect labour used.
Other overheads 88,750
- cash 88,750
To record the other overheads incurred
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Journal Entries: Prepare journal entries for the month of March to record the below transactions (make...
Journal Entries: Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry). Raw materials purchases (on credit). Assume the firm purchased $282,000 worth of raw materials in March. Direct materials used in production: Mixing Department: $250,000; Packaging Department: $16,500. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit): Mixing Department: $60,000;...
Raw materials purchases (on credit).  Assume the firm purchased $282,000 worth of raw materials in March. Direct...
Raw materials purchases (on credit).  Assume the firm purchased $282,000 worth of raw materials in March. Direct materials used in production:  Mixing Department: $250,000;  Packaging Department: $16,500. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit):  Mixing Department: $60,000;  Packaging Department:  $31,800. Overhead costs applied:  Mixing Department: $84,000;  Packaging Department:  $44,520. Actual Indirect materials used:  $16,200. Actual Indirect labor used (assume did not pay Cash, use the ‘Factory Wages Payable’ account for the credit):  $23,700. Actual other overhead costs incurred:  $88,750 (credit...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential processes, mixing and freezing. It uses process costing to account for production costs during each period. The following is information obtained from the source documents for Utopia Co. for the month of December: Raw materials purchased (direct and indirect) $208,200 Raw materials inventory (direct and indirect), beginning balance $45,600 Direct materials used – Mixing Department $95,200 Direct materials used – Freezing Department $89,700 Direct...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential processes, mixing and freezing. It uses process costing to account for production costs during each period. The following is information obtained from the source documents for Utopia Co. for the month of December: Raw materials purchased (direct and indirect) $208,200 Raw materials inventory (direct and indirect), beginning balance $45,600 Direct materials used – Mixing Department $95,200 Direct materials used – Freezing Department $89,700 Direct...
Prepare journal entries to record the following transactions for June using a job order costing system....
Prepare journal entries to record the following transactions for June using a job order costing system. (a) Purchased raw materials on credit, $84,000. (b) Raw materials requisitioned: $10,000 direct and $6,200 indirect. (c) Factory payroll accrued $35,000, including $12,500 indirect labor, remainder was direct labor. (d) Paid other actual overhead costs totaling $8,500 with cash. (e) Applied overhead totaling $27,600. (f) Finished and transferred jobs totaling $67,500. (g) Jobs costing $55,200 were sold on credit for $80,000.
Problem 21-1A Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging....
Problem 21-1A Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2017, inventories consisted of Raw Materials $27,100, Work in Process—Mixing $0, Work in Process—Packaging $251,300, and Finished Goods $290,300. The beginning inventory for Packaging consisted of 12,600 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 54,900 units were started into production in...
5) The journal entry for cost of goods manufactured includes the costs of units that are...
5) The journal entry for cost of goods manufactured includes the costs of units that are partially completed. 6) Advertising costs should NOT be charged to the Manufacturing Overhead account. 7) The following entry would be used to record the transfer of $40,000 of direct material and $10,000 of indirect material from the storeroom to production: Direct Materials 40,000 Indirect Materials 10,000 Raw Materials 50,000 8) Entry (16) in the below T-account represents the cost of goods manufactured transferred to...
Prepare journal entries to record the following production activities. Transferred completed goods from the Assembly department...
Prepare journal entries to record the following production activities. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $132,000. Sold $442,000 of goods on credit. Their cost is $153,000. Record the transfer of goods from the assembly department to finished goods. Note: Enter debits before credits. Transaction General Journal Debit Credit 1. Record the sale of goods on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit 2-a. Journal entry worksheet Record the...
Journal Entries Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of...
Journal Entries Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July: Department Manufacturing Costs Added* Ending Work in Process Mixing $87,500 $21,320 Encapsulating 75,570 19,810 Bottling 72,470 4,320 *Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not...
Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below....
Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $40,300 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $16,600 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $46,200 is applied in the Mixing Department using the department’s predetermined overhead rate. (4) Units with a...