Zelda Manufacturing organized in June and recorded the following transactions du
ID: 2422927 • Letter: Z
Question
Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations:
1) Purchased materials costing $800,000 2) Used direct materials in production costing $485,000 3) Applied direct labor costs of $500,000 to various jobs 4) Applied manufacturing overhead at a rate of $10 per direct labor hours. (Direct labot workers earn $20 per hour) 5) Incurred actual manufacturing overhead costs of $245,000 (credit "Various Accounts") 6) Transferred completed jobs costing $745,000 to finished goods. 7) Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000 8) Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30.
A) Prepare a journal entry for each of the eight transactions listed above B) Compute the balance of the Cost of Goods Sold account at June 30. C) Determine the company's inventory balances at the end of June.
Explanation / Answer
b) Balance $995,000
c)Raw materials 315,000
WIP 490,000
Finished goods 255,000
Raw materials inventory $800,000 to accounts payable $800,000 Work in progress 485,000 Raw materials inventory 485,000 Work in process 500,000 to Factory payroll 500,000 Work in progress $250,000 To Manufacturing overhead(500,000/20*10) $250,000 Manufactuirng overhead $245,000 to Various accounts $245,000 Finished goods 745,000 To WIP 745,000 Cost of goods sold 1,000,000 To finished goods 1,000,000 Manufacturing overhead 5,000 To Cost of goods sold 5,000Related Questions
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