Question

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Li Company produces large quantities of a standardized product. The following information is available for its production activities for January.

Raw materials				Factory overhead incurred
Beginning inventory	$	18,000		Indirect materials used	$	77,500
Raw materials purchased (on credit)		285,000		Indirect labor used		40,000
Direct materials used		(171,500	)	Other overhead costs		162,360
Indirect materials used		(77,500	)	Total factory overhead incurred	$	279,860
Ending Inventory	$	54,000
				Factory overhead applied
Factory payroll				(140% of direct labor cost)
Direct labor used	$	199,900		Total factory overhead applied	$	279,860
Indirect labor used		40,000
Total payroll cost (paid in cash)	$	239,900

Additional information about units and costs of production activities follows.

Units			Costs
Beginning goods in process inventory	2,500		Beginning goods in process inventory
Started	32,000		Direct materials	$	2,000
Ending goods in process inventory	5,500		Direct labor		3,500
			Factory overhead		4,300
						$	9,800
Status of ending goods in process inventory			Direct materials added				171,500
Materials—Percent complete	80	%	Direct labor added				199,900
Labor and overhead—Percent complete	45	%	Overhead applied (140% of direct labor)				279,860
			Total costs			$	661,060
			Ending goods in process inventory			$	61,174

During January, 16,000 units of finished goods are sold for $170 cash each. Cost information regarding finished goods follows.

Beginning finished goods inventory	$	145,000
Cost transferred in		599,886
Cost of goods sold		(590,390	)
Ending finished goods inventory	$	154,496

1.

value:
35.00 points

Required information

Required:
1(a)	Prepare journal entry dated January 31 to record the purchase of raw materials. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Accounts payableRaw materials inventoryFactory overheadCashCost of goods soldFactory payrollFinished goods inventorySales
	(Click to select)Factory payrollCost of goods soldAccounts payableRaw materials inventorySalesFinished goods inventoryFactory overheadCash

  

1(b)	Prepare journal entry dated January 31 to record the direct materials usage. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Factory payrollCashRaw materials inventoryAccounts payableGoods in process inventoryOther accountsFactory overheadFinished goods inventory
	(Click to select)Goods in process inventoryFactory overheadAccounts payableFinished goods inventoryOther accountsCashFactory payrollRaw materials inventory

    

1(c)	Prepare journal entry dated January 31 to record the indirect materials usage. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Factory overheadFinished goods inventoryFactory payrollCost of goods soldGoods in process inventoryRaw materials inventoryCashAccounts payable
	(Click to select)Factory overheadAccounts payableRaw materials inventoryFactory payrollFinished goods inventoryGoods in process inventoryCost of goods soldCash

  

1(d)	Prepare journal entry dated January 31 to record the factory payroll costs. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Raw materials inventoryFactory payrollGoods in process inventoryFactory overheadOther accountsCashAccounts payableSales
	(Click to select)SalesCashFactory payrollRaw materials inventoryAccounts payableGoods in process inventoryFactory overheadOther accounts

  

1(e)	Prepare journal entry dated January 31 to record the direct labor costs used in production. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)CashGoods in process inventorySalesOther accountsCost of goods soldFactory overheadFactory payrollFinished goods inventory
	(Click to select)Cost of goods soldFinished goods inventorySalesGoods in process inventoryFactory overheadCashOther accountsFactory payroll

   

1(f)	Prepare journal entry dated January 31 to record the indirect labor costs. (Omit the "$" sign in your response.)

   

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)CashSalesGoods in process inventoryOther accountsFinished goods inventoryFactory payrollCost of goods soldFactory overhead
	(Click to select)Finished goods inventoryGoods in process inventoryFactory payrollCashFactory overheadCost of goods soldOther accountsSales

    

1(g)	Prepare journal entry dated January 31 to record the other overhead costs—credit Other Accounts. (Omit the "$" sign in your response.)

    

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Goods in process inventoryRaw materials inventoryRevenuesFinished goods inventorySalesCost of goods soldOther accountsFactory overhead
	(Click to select)Finished goods inventorySalesRevenuesGoods in process inventoryRaw materials inventoryOther accountsCost of goods soldFactory overhead

   

1(h)	Prepare journal entry dated January 31 to record the overhead applied. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)SalesRaw materials inventoryGoods in process inventoryFinished goods inventoryCashAccounts payableFactory overheadCost of goods sold
	(Click to select)Finished goods inventoryFactory overheadCashCost of goods soldGoods in process inventorySalesAccounts payableRaw materials inventory

  

1(i)	Prepare journal entry dated January 31 to record the goods transferred to finished goods. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)CashRaw materials inventoryFinished goods inventorySalesGoods in process inventoryFactory overheadAccounts payableCost of goods sold
	(Click to select)SalesAccounts payableFactory overheadGoods in process inventoryRaw materials inventoryFinished goods inventoryCost of goods soldCash

  

1(j)	Prepare journal entries dated January 31 to record the sale of finished goods. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Raw materials inventoryFactory overheadGoods in process inventoryFactory payrollAccounts payableSalesCashAccounts receivable
	(Click to select)Accounts payableAccounts receivableCashFactory payrollSalesFactory overheadGoods in process inventoryRaw materials inventory
	(Click to select)Factory overheadFinished goods inventoryGoods in process inventoryAccounts receivableFactory payrollAccounts payableCost of goods soldRaw materials inventory
	(Click to select)Raw materials inventoryFactory overheadGoods in process inventoryAccounts receivableAccounts payableFinished goods inventoryFactory payrollCost of goods sold

Answer 1