Recording Inventory Costs [LO 6, 7] Vulcan Molding produces molded rubber compon

Question

Recording Inventory Costs [LO 6, 7]

Vulcan Molding produces molded rubber components. At the start of the year, the company estimated that it would incur $3,403,200 of direct labor cost and $8,848,320 of manufacturing overhead. Overhead is allocated to production on the basis of direct labor cost. Actual materials used during the year were $5,534,900, actual direct labor cost was $3,542,000, and actual overhead was $9,484,600.






Calculate the overhead rate for the current year. (Enter answer to 2 decimal places, e.g. 5.25.)

$






Prepare the journal entry to record use of direct material.

Accounts/Description Debit Credit
Cost of goods soldWages payableManufacturing overheadCashWork in processRaw materials in inventory
Wages payableManufacturing overheadCost of goods soldWork in processCashRaw materials in inventory







Prepare the journal entry to record direct labor.

Accounts/Description Debit Credit
Cost of goods soldRaw materials in inventoryManufacturing overheadWages payableCashWork in process
Wages payableCashRaw materials in inventoryWork in processCost of goods soldManufacturing overhead







Prepare the journal entry to record manufacturing overhead applied to production.

Accounts/Description Debit Credit
CashCost of goods soldWages payableWork in processRaw materials in inventoryManufacturing overhead
Manufacturing overheadWages payableRaw materials in inventoryWork in processCost of goods soldCash







Prepare the journal entry to close the balance in manufacturing overhead to cost of goods sold.

Accounts/Description Debit Credit
Raw materials in inventoryManufacturing overheadCost of goods soldWages payableCashWork in process
Manufacturing overheadWork in processCost of goods soldWages payableCashRaw materials in inventory

Explanation / Answer

Prepare the journal entry to record use of direct material. Accounts/Description Debit Credit Cost of goods soldWages payableManufacturing overheadCashWork in processRaw materials in inventory Wages payableManufacturing overheadCost of goods soldWork in processCashRaw materials in inventory Prepare the journal entry to record direct labor. Accounts/Description Debit Credit Cost of goods soldRaw materials in inventoryManufacturing overheadWages payableCashWork in process Wages payableCashRaw materials in inventoryWork in processCost of goods soldManufacturing overhead Prepare the journal entry to record manufacturing overhead applied to production. Accounts/Description Debit Credit CashCost of goods soldWages payableWork in processRaw materials in inventoryManufacturing overhead Manufacturing overheadWages payableRaw materials in inventoryWork in processCost of goods soldCash Prepare the journal entry to close the balance in manufacturing overhead to cost of goods sold. Accounts/Description Debit Credit Raw materials in inventoryManufacturing overheadCost of goods soldWages payableCashWork in process Manufacturing overheadWork in processCost of goods soldWages payableCashRaw materials in inventory

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