Granger Products recorded the following transactions for the just completed mont
ID: 2378378 • Letter: G
Question
Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories.
1. Post the above transactions to T-accounts.( Cash, Raw Materials, Work in Process, Finished Goods, Manufacturing Overhead, Cost of Goods Sold) e-f is where the confusion lies
$72,500 in raw materials were requisitioned for use in production. Of this amount, $65,500 was for direct materials and the remainder was for indirect materials.
Total labor wages of $152,800 were incurred and paid. Of this amount, $134,800 was for direct labor and the remainder was for indirect labor.
Manufacturing overhead costs of $168,500 were applied to jobs using the company
Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories.
1. Post the above transactions to T-accounts.( Cash, Raw Materials, Work in Process, Finished Goods, Manufacturing Overhead, Cost of Goods Sold) e-f is where the confusion lies
2. Determine the cost of goods sold for the period.Explanation / Answer
Debit Credit
a) Purchase ( Raw Material) A/c Dr $75000
To Cash $75000
( Being Raw Material Purchase)
b) No Entry in the Financial Accounting
C) Wages A/c Dr $134000
To Cash $152000
( Being Labour Charges Paid)
Salary A/c Dr $18000
To Cash $18000
( Being Labour Charges Paid)
d) Manufacturing Overhead A/c Dr $126000
To Cash $126000
( Being Manufacturing Overhead Paid)
e) No Entry in the Financial Accounting
f) Customer A/c Dr Sale Price
To Sale A/c Sale Price
( Being Raw Material Purchase)
g) No Entry in financial accounting
2. COGS = 72,500+152,800+125,400 =$350,700
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