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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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