Sereno Company makes piñatas for children’s birthday parties. Information for Se

Question

Sereno Company makes piñatas for children’s birthday parties. Information for Sereno’s last six months of operation is listed below. Required: Prepare the journal entries to record each of the following transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

(a) Purchased $8,800 of raw materials on credit.

(b) Issued $3,100 of direct materials into production.

(c) Recorded $14,600 in direct labor.

(d) Applied $17,300 in manufacturing overhead.

(e) Completed pinatas costing $21,050.

(f) Recorded $18,700 in actual manufacturing overhead.

(g) Sold piñatas for $48,600 that cost $18,100 to produce (assume that Sereno Company uses a perpetual inventory system).

Explanation / Answer

Sereno Company Journal entry Sr no Account tiltle Dr $ Cr $ a Inventory-Raw Materials                8,800.00 Accounts Payable         8,800.00 b Work In Process                3,100.00 Inventory-Raw Materials         3,100.00 c Work In Process             14,600.00 Wages Payable      14,600.00 d Work In Process             17,300.00 Manufacturing Overhead A/C      17,300.00 e Work In Process      21,050.00 Finished Goods               21,050.00 f Manufacturing Overhead A/C             18,700.00 Accounts Payable/Cash      18,700.00 g Sales Revenue      48,600.00 Accounts Receivable/ Cash             48,600.00 Cost of Goods sold             18,100.00 Finished Goods        18,100.00

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