Question

The selected data that follow relate to the Underwood Furniture Company.

Direct material purchased on account	$	198,000
Direct material used		88,000
Direct labor		189,000
Manufacturing overhead incurred		195,000
Manufacturing overhead applied		128,000

During the year, products costing $348,000 were completed, and products costing $373,000 were sold on account for $540,000.

Required:

Prepare journal entries to record the preceding transactions and events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1- Record the purchase of the inventory

2- Record the issue of material for processing

3- Record the wages payable

4- Record the manufacturing overhead incurred

5- Record the manufacturing overhead applied

6- Record the transfer of completed products to finished-goods inventory

7- Record the sales revenue

8- Record the cost of goods sold

Answer 1

No	General journal				Debit	Credit
1)	Raw materials inventory				198,000
	Accounts payable					198,000
2)	work in process inventory				88,000
	Raw materials inventory					88,000
3)	work in process inventory				189,000
	Factory wages payable					189,000
4)	Manufacturing overhead				195,000
	Accounts payable					195,000
5)	Work in process inventory				128,000
	Manufacturing overhead					128,000
6)	finished goods inventory				348,000
	Work in process inventory					348,000
7)	Accounts receivable				540,000
	sales					540,000
8)	Cost of goods sold				373,000
	Finished goods inventory					373,000