Homework chapter20 part one Question 2 (of 4) value: 10.00 points Sturdy Packagi

Question

Homework chapter20 part one Question 2 (of 4) value: 10.00 points Sturdy Packaging makes cardboard shipping cartons in a single operation. This period, Sturdy purchased $125,000 in raw materials. Its production department requisitioned $90,000 of those materials for use in producing cartons. Sturdy Packaging incurred $165,000 in factory payroll costs, of which $110,000 was direct labor (1)Prepare joumal entries to record its total factory payroll incurred. (Omit the "$" sign in your response.) General Journal Debit (Click to select) (Click to select) (2)Prepare journal entries to record its direct labor used in production. (Omit the "S-sign in your response.) General Journal (Click to select) (Click to select) References Worksheet Difficulty: 2 Medium Learning Objective: accounting Check my work 12

Explanation / Answer

Journal entries 1 Factory Payroll cost account Dr.    165,000 To Bank account      55,000 To Direct Labor account    110,000 2 Direct Labor account Dr.    110,000 To Cost of production account    110,000 1 Work in progree inventory Dr.      63,000 Manufacturing overhead Dr.      62,000 To Raw Material inventory    125,000 (being indirect material recored) 2 Work in progree inventory Dr.    110,000 Manufacturing overhead Dr.      55,000 To Factory Labor    165,000 (being indirect labor cost recored) 3 Manufacturing overhead Dr.    220,000 To Accounts Payable    220,000 (being overhead cost incurred) 4 Work in progree inventory Dr.    143,000 To Manufacturing overhead    143,000 (being overhead cost charged to production) (110000*130%=143000) 5 Finished goods inventory Dr.    335,000 To Work in Progress Inventory    335,000 (being transfer of boxes from production to finished goods)

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