Question 3 A. Journ alize the following transactions: the following tr a. Direct

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Question 3 A. Journ alize the following transactions: the following tr a. Direct materials were purchased cash a b. Raw materials were naterials worth e requisitioned for use in the factory indirect supplies for the factory costing Direct for of c. $7000 and salary supervisor was $24000 d. Utilities of the factory was $4000 or employee services: direct labour $5000; indirect labour $7500 Depreciation other 55% was for administration departments f. for the year was $3000; 45% was for factory and the redetermined rate was $2.10 per direct labour hours. Manufacturing g. P overhead was applied to production using 5000 direct labor hours. Show the information on aT-Account h. F inished goods costing $75000 were sold cash for $12500

Explanation / Answer

Journal Entries

Debit

Credit

(a)

Direct Materials a/c

$ 1,80,000

Cash a/c

$ 1,80,000

(b)

Work-in-Process a/c

$ 70,000

Raw Material Inventory or Direct Material Inventory a/c

$ 70,000

(c )

Manufacturing overhead a/c

$ 7000

Manufacturing overhead a/c

$ 24000

      Accounts payable

$ 31000

( d)

Manufacturing overhead a/c

$ 4000

Accounts Payable

$ 4000

(e )

Work-in-Process a/c

$ 5000

Manufacturing overhead a/c

$ 7500

   Factory Payroll a/c

$ 12,500

( f)

Factory Overhead a/c

$ 1350

Administration Overhead a/c

$ 1650

Accumulated Depreciation

$ 3000

(g)

Work-in –process                                                                        

$ 10500

   Manufacturing overhead a/c                                                                                       

$ 10500

(h)

Cost of goods sold a/c                                                                 

$ 75,000

    Finished Goods Inventory

$ 75,000

(i )

Accounts Receivable a/c

$ 62500

Cash a/c

$ 12500

   Sales a/c

$ 75000

Journal Entries

Debit

Credit

(a)

Direct Materials a/c

$ 1,80,000

Cash a/c

$ 1,80,000

(b)

Work-in-Process a/c

$ 70,000

Raw Material Inventory or Direct Material Inventory a/c

$ 70,000

(c )

Manufacturing overhead a/c

$ 7000

Manufacturing overhead a/c

$ 24000

      Accounts payable

$ 31000

( d)

Manufacturing overhead a/c

$ 4000

Accounts Payable

$ 4000

(e )

Work-in-Process a/c

$ 5000

Manufacturing overhead a/c

$ 7500

   Factory Payroll a/c

$ 12,500

( f)

Factory Overhead a/c

$ 1350

Administration Overhead a/c

$ 1650

Accumulated Depreciation

$ 3000

(g)

Work-in –process                                                                        

$ 10500

   Manufacturing overhead a/c                                                                                       

$ 10500

(h)

Cost of goods sold a/c                                                                 

$ 75,000

    Finished Goods Inventory

$ 75,000

(i )

Accounts Receivable a/c

$ 62500

Cash a/c

$ 12500

   Sales a/c

$ 75000

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