A. Journalize the following transactions: a. Raw materials were purchased on acc
ID: 2437506 • Letter: A
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A. Journalize the following transactions: a. Raw materials were purchased on account at $80000 b. Raw materials were requisitioned for use in the factory Direct materials worth $20000 and indirect materials costing $2000 and administrative staff $14000 c. Electricity cost at the factory was $14000 d. Cost incurred for emplovee services: direct labour $5000; e. Depreciation for the year was $3000, 45% was for factory f. indirect labour $7500 and the other 55% was for administration departments Predetermined rate was $3.10 per direct labour hours. Manufacturing overhead was applied to production using 2000 direct labor hours. g. Finished goods costing $50000 were sold on account for $32500Explanation / Answer
Date Account titles and explanation Debit Credit a Raw materials inventory $ 80,000 Accounts payable $ 80,000 b Work in process inventory $ 20,000 Manufacturing Overhead $ 2,000 Administrative expenses $ 14,000 Raw Materials Inventory $ 36,000 c Manufacturing Overhead $ 14,000 Accounts payable/Cash $ 14,000 d Work in process inventory $ 5,000 Manufacturing Overhead $ 7,500 Wages Payable $ 12,500 e Manufacturing Overhead $ 1,350 Depreciation-Administration $ 1,650 Accumulated Depreciation $ 3,000 f Work in process inventory $ 6,200 Manufacturing Overhead $ 6,200 g Accounts Receivable $ 32,500 Sales $ 32,500 Cost of goods sold $ 50,000 Finished Goods inventory $ 50,000 Note: In the last entry g seems some printing mistakes since cost of goods sold is 50000 and sales revenue is only 32500 Note I have tried my est for correct solution, still need any further help, please ask in comment, Thanks.
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