The selected data that follow relate to the C&R Ice Company. Direct material pur

ID: 2455098 • Letter: T

Question

The selected data that follow relate to the C&R Ice Company.

Direct material purchased on account $150,000

Direct material used 69,000

Direct Labor 160,000

Manufacturing overhead incurred 90,000

Manufacturing overhead applied 80,000

During the year, products costing $300,000 were completed, and products costing $306,000 were sold on account for $445,000.

Required:

Prepare journal entries to record the preceding transactions and events.

Answer:

Raw material inventory A/C Dr. $150000

To Accounts payable A/C $150000

Work in process inventory A/C Dr. $69000

To Raw material inventory A/C $69000

Work in process inventory A/C Dr. $160000

To Wages and salaries payable A/C $160000

Manufacturing overhead A/C Dr. $90000

To Accounts payable/Cash a/C $90000

Work in process inventory A/C Dr. $80000

To manufacturing overhead A/C $80000

Finished goods inventory A/C Dr. $300000

To Work in process inventory A/C $300000

Cost of goods sold A/C Dr. $306000

To finished goods inventory A/C $306000

Accounts receivable A/C Dr. $445000

To sales A/C $445000

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