Sanders Company has two production departments: Fabricating and Finishing. Begin

Question

Sanders Company has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process-Fabricating, $6,030; Work in Process-Finishing, $4,100; and Finished Goods, $5,600. During the month the following transactions occurred: Purchased $40,000 of raw materials on account. Incurred $75,000 of factory labor. Wages are unpaid. Incurred $50,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid. Requisitioned materials for Fabricating, $10,000 and Finishing, $8,000. Used factory labor for Finishing, $60,000 and Fabricating, $15,000. Applied $45,000 of overhead based on machine hours used in each department. The Finishing Department used twice as many machine hours as did Fabricating. Journalize the transactions for the month. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Journalize the transactions for the month. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Explanation / Answer

Solution:

(A). Raw Material Purchase:

   Ra Material 40,000

   Accounts Payable 40,000

(B). Inncue Labour Cost:

   Factory Payroll 75,000

   Cash 75,000

(C). Inccured Manufacturing Costs:

Goods in Process Inventory 50,000

   Receivables 40,000

   Unpaid Amount 10,000

(D).

   Goods in Process Inventory 18,000

Factory Payroll 18,000

(E).

Factory Overhead 75,000

Factory Payroll 75,000

(F).

Goods in Process 45,000

   Factory Overhead 45,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.