1. Prepare journal entries dated March 31 to record the following March activiti
ID: 2448139 • Letter: 1
Question
1. Prepare journal entries dated March 31 to record the following March activities: (a) purchase of raw materials, (b) direct materials usage, (c) indirect materials usage, (d) factory payroll costs, (e) direct labor costs used in production, (f) indirect labor costs, (g) other overhead costs—credit Other Accounts, (h) overhead applied, (i) goods transferred to finished goods, and ( j) sale of finished goods.
1. Prepare journal entries dated March 31 to record the following March activities: (a) purchase of raw materials, (b) direct materials usage, (c) indirect materials usage, (d) factory payroll costs, (e) direct labor costs used in production, (f) indirect labor costs, (g) other overhead costs—credit Other Accounts, (h) overhead applied, (i) goods transferred to finished goods, and ( j) sale of finished goods.
Explanation / Answer
Question 1. Date Account Title Debit Credit a Purchase 250000 Accounts Payable 250000 b Work in process 168000 Purchase 168000 c Manufacturing Overhead 70000 Purchase 70000 d Salaries and Wages 244850 Cash 244850 e Work in process 199850 Salaries and Wages 199850 f Manufacturing Overhead 45000 Salaries and Wages 45000 g Other Overhead Expenses 164790 Cash 164790 h Manufacturing Overhead 164790 Other Overhead Expenses 164790 i Finished Goods 572390 Work in process 572390 j Acconts Receivable 1200000 Sales revenue 1200000 Sales revenue 1200000 Income Summary 1200000 Income Summary 592390 Cost of Goods Sold 592390 Question 2 Total Cost to Account for Beginning WIP Inventory 8860 Units Started 647640 Total Cost to Account for 656500 Units to Account for: Beginning WIP Inventory 2000 Units Started 20000 Total Units to Accounted for 22000 Units Accounted for: Finished Goods 17000 Ending WIP 5000 Equivalent units of Production Units %material EUP-Material %Labour EUP Labour %Overhead EUP Overhead Finished Goods 17000 100% 17000 100% 17000 100% 17000 Ending WIP Inventory 5000 100% 5000 35% 1750 35% 1750 Total Units Accounted For 22000 22000 18750 18750 Cost per Equivalent Production Material Labour Overhead Beginning WIP Inventory 2500 2650 3710 Started 168000 199850 279790 Total Cost 170500 202500 283500 Cost oer EUP 7.75 10.8 15.12 Total Cost Accounted For Cost of Units Transferred out EUP Cost Per EUP Total Cost Direct Material 17000 7.75 131750 Direct Labour 17000 10.8 183600 Factory Overhead 17000 15.12 257040 Total Cost of goods transferred 572390 Ending WIP Inventory Direct Material 5000 7.75 38750 Direct Labour 1750 10.8 18900 Factory Overhead 1750 15.12 26460 Total Cost of Ending WIP Inventory 84110 Total Cost Accounted For 656500
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