Question

Prepare journal entries to record the following transactions for April using a job order cost accounting system.

a.) purchased raw materials on account, 69,000

b.) raw materials requisitioned for jobs: 26,000 direct and 5,400 indirect

c.) factory payroll totalled 46,000

d.) factory payroll assigned to work in process 36,500 and indirect labor 9,500

e.) incurred other actual overhead costs totaling 14,500

f.) applied overhead totaling at a rate of 80% of direct labor cost

g.) finished and transferred jobs totaling 77,500

h.) jobs costing 58,800 were sold on credit for 103,000

I left them together as they are all related and you need information from one to answer another. I really only need letters C-F but if you could complete them all that would be wonderful as I am not very confident in the ones I was able to complete. Thanks ahead of time and take care.

Answer 1

	Journal Entries
	For the Year ended April 31st
	Particular	Amount (Dr)	Amount(Cr
a)	Raw Material	$        69,000.00
	To Accounts Payable		$        69,000.00
	(Being Amount of Raw material Purchased)
b)	WIP	$        26,000.00		(Direct )
	Manufacturing Overhead	$          5,400.00		(Indirect)
	To Raw Material		$        31,400.00
	(Being amount of Raw Material Requisitioned for Jobs)
c)	Factory Payroll	$        46,000.00
	To Salary & Wages Payable		$        46,000.00
	(Being amount of Factory Payroll)
d)	WIP	$        36,500.00		(Direct)
	Manufacturing Overhead	$          9,500.00		(Indirect)
	To Factory Payroll		$        46,000.00
	(Being amount of Factory Payroll assigned to Jobs)
e)	Manufacturing Overhead	$        14,500.00
	To Accounts Payble		$        14,500.00
	(Being amount of Actual Overhead)
f)	WIP=($36500*80%)	$        29,200.00
	To Manufacturing Overhead(Applied)		$        29,200.00
	(Being amount of Overhead applied to Jobs)
g)	Finished Goods	$        77,500.00
	To WIP		$        77,500.00
	(Being amount of WIP transferred to Finished Goods)
h)	Accounts Receivable	$      103,000.00
	To Sales		$      103,000.00
	(Being amount of Job sold on Credit)
h)	Cost of goods sold	$        58,800.00
	To Finished Goods		$        58,800.00
	(Being amount of cost of goods sold)