Question

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   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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: Materials were purchased on account for $45,760. Materials totaling $40,980 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. Actual overhead of $8,870 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs...
Entries and Schedules for Unfinished Jobs and Completed Jobs Mellow Company uses a job order cost...
Entries and Schedules for Unfinished Jobs and Completed Jobs Mellow Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: Materials purchased on account, $3,170. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $3,030 $3,160 102 3,700 4,270 103 2,450 2,090 104 8,300 7,840 105 5,270 5,970 106 3,850 3,790 For general factory use 1,030 4,680 Factory overhead costs incurred on account, $5,790....
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company’s operating year. Data from the job cost sheets of the three jobs follow:    Job Cost Sheet    Job 105 Job 106 Job 107   November costs incurred:      Direct materials $ 16,500 $ 9,300 $ 0...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company’s operating year. Data from the job cost sheets of the three jobs follow:    Job Cost Sheet    Job 105 Job 106 Job 107   November costs incurred:      Direct materials $ 19,500 $ 12,300 $ 0...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $577,800 from the Casting Department. The conversion cost for the period in the Rolling Department is $112,500 ($68,500 factory overhead applied and $44,000 direct labor). The total cost transferred to Finished Goods for the period was $692,700. The Rolling Department had a beginning inventory of $28,000. a1. Journalize the cost of transferred-in materials. Work in Process-Rolling Accounts Payable Cash Factory Overhead-Casting Factory...
The following information is taken from the accounts of Latta Company. The entries in the T-accounts...
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 488,448 (b) 407,040 Bal. 81,408 Work in Process Bal. 9,960 (c) 758,000 302,000 91,000 (b) 407,040 Bal. 52,000 Finished Goods Bal. 38,000 (d) 664,000 (c) 758,000 Bal. 132,000 Cost of Goods Sold (d) 664,000 The overhead that had been applied to production during the year is distributed among Work...
Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual...
Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead $470,000 Applied overhead:       Work-in-process inventory $100,000       Finished goods inventory 200,000       Cost of goods sold 200,000       Total $500,000 Warner uses the overhead control account to accumulate both actual and applied overhead. Required: 1. Calculate the overhead variance for the year. Provide the appropriate adjusting journal entry to close the overhead variance to Cost of Goods Sold. Work-in-Process Inventory Cash Cost of Goods Sold Finished...
Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3...
Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 [The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $48,500 Job 137 32,500 Job 138 19,200 Job 139 22,400 Job 140...
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;...
Coronodo Industries makes specialized clothing for businesses in the food and beverage industry. During September, Ricardo...
Coronodo Industries makes specialized clothing for businesses in the food and beverage industry. During September, Ricardo completed the following transactions. Sept       1        Direct materials costing $60,000 were purchased on account. 3        Direct materials costing $32,850 were requested into production (all were used on Job A). 4 Indirect materials were purchased for cash, $32,830. 8 The company issued checks for the following factory overhead costs:  Utilities, $3,210; manufacturing insurance, $4,025; and repairs, $4,640 10        Direct materials costing $34,510 (all used on Job A) and indirect materials...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT