Given the following information for Graves Corporation, prepare the necessary jo

Question

Given the following information for Graves Corporation, prepare the necessary journal entries, assuming that the Raw Material Inventory account contains both direct and indirect material. Purchased raw material on account $28,500. Put material into production: $15,000 of direct material and $3,000 of indirect material. Accrued payroll of $90,000, of which 70 percent was direct and the remainder was indirect. Incurred and paid other overhead items of $36,000. Transferred items counting $86,500 to finished goods. Sold goods counting $71,300 on account for $124,700. The following information is for the Cameron Manufacturing Company for November. Calculate total manufacturing costs cost of goods manufactured, and cost of goods sold.

Explanation / Answer

Statement of cost of gods manufactured

Date Particulars L/F Dr $ Cr $ Purchases 28,500         Accounts payable 28,500 Works in process 18,000         Direct material 15,000         Indirect material 3,000 Accrued payroll expenses 90,000         Direct expenses 63,000         Indirect expenses 27,000 Other overhead expenses 36,000         Cash 36,000 Finished goods 86,500          works in process 86,500 Sales 71,300         Cost of merchandise 71,300 Sales 124,700         Accounts receivables 124,700

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