Debits to account: Balance, June 1 $ 7,200 Direct materials 14,000 Direct labor
ID: 2377630 • Letter: D
Question
Debits to account:
Balance, June 1 $ 7,200
Direct materials 14,000
Direct labor 9,000
Manufacturing overhead (applied to jobs as 150% of direct labor cost) 14,000
Total debits to account $ 42,400
Credits to account:
Transferred to Finished Goods Inventory account 33,200
Balance, June 30 $ 11,000
a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $2,200, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. (Omit the "$" sign in your response.)
Manufacturing overhead applied to jobs $
Direct materials charged to jobs $
b. Prepare general journal entries to summarize: (Omit the "$" sign in your response.)
1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June.
2. The transfer of production completed during June to the Finished Goods Inventory account.
3. The cash sale of 90 percent of the merchandise completed during June at a total sales price of $49,000. Show the related cost of goods sold in a separate journal entry.
Explanation / Answer
a. 150% *2200 = 3300
b. Journal Entries
June 30 June
Direct labor charged = 2200 Balance, June 1 = 7,200
Balance, June 30 = 9,000 Balance, June 30 = 9,000
Manufacturing overhead = 14,000 Direct materials =14,000
Total debits to account =42,400
Transferred to Finished Goods Inventory =33,200
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