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Journal Entries, T-Accounts Ehrling Brothers Company makes jobs to customer order. During the month of July,...

Journal Entries, T-Accounts

Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:

  1. Materials were purchased on account for $45,620.
  2. Materials totaling $40,980 were requisitioned for use in producing various jobs.
  3. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour.
  4. Actual overhead of $8,850 was incurred and paid in cash.
  5. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour.
  6. Completed jobs costing $60,000 were transferred to Finished Goods.
  7. Jobs costing $59,000 were sold on account for $ 73,850. 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 $1,200
Work-in-Process Inventory 3,400
Finished Goods Inventory 2,620

Required:

1. Prepare the journal entries for the preceding events.

a. Materials fill in the blank 245847fe4fbc01d_2
Accounts Payable fill in the blank 245847fe4fbc01d_4
b. Work in Process fill in the blank 245847fe4fbc01d_6
Materials fill in the blank 245847fe4fbc01d_8
c. Work in Process fill in the blank 245847fe4fbc01d_10
Wages Payable fill in the blank 245847fe4fbc01d_12
d. Overhead Control fill in the blank 245847fe4fbc01d_14
Cash fill in the blank 245847fe4fbc01d_16
e. Work in Process fill in the blank 245847fe4fbc01d_18
Overhead Control fill in the blank 245847fe4fbc01d_20
f. Finished Goods fill in the blank 245847fe4fbc01d_22
Work in Process fill in the blank 245847fe4fbc01d_24
g (1). Accounts Receivable fill in the blank 245847fe4fbc01d_26
Sales Revenue fill in the blank 245847fe4fbc01d_28
g (2). Cost of Goods Sold fill in the blank 245847fe4fbc01d_30
Finished Goods fill in the blank 245847fe4fbc01d_32

2. Calculate the ending balances of:

a. Materials Inventory $fill in the blank f4d1b7fbd02502d_1
b. Work-in-Process Inventory $fill in the blank f4d1b7fbd02502d_2
c. Overhead Control $fill in the blank f4d1b7fbd02502d_3
d. Finished Goods Inventory $fill in the blank f4d1b7fbd02502d_4
Business   Accounting   
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Answer #1

Required:

1. Prepare the journal entries for the preceding events.

a. Materials 45620
Accounts Payable 45620
b. Work in Process 40980
Materials 40980
c. Work in Process 22400
Wages Payable 22400
d. Overhead Control 8850
Cash 8850
e. Work in Process (22400/14*5.4) 8640
Overhead Control 8640
f. Finished Goods 60000
Work in Process 60000
g (1). Accounts Receivable 73850
Sales Revenue 73850
g (2). Cost of Goods Sold 59000
Finished Goods 59000

2. Calculate the ending balances of:

a. Materials Inventory 1200+45620-40980 = 5840
b. Work-in-Process Inventory 3400+40980+22400+8640-60000 = 15420
c. Overhead Control 8850-8640 = 210 Under applied
d. Finished Goods Inventory 2620+60000-59000 = 3620
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