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Problem 2 Prepare Jounal Entries Jones Company recorded the following transactio

ID: 2562070 • Letter: P

Question

Problem 2 Prepare Jounal Entries Jones Company recorded the following transactions for the just-completed month. a. $45,000 in raw materials were purchased on account. b. $125,000 in raw materials were requisitioned for use in production. Of this amount $70,000 was for direct materials and the remainder was for indirect materials. c. Total labour wages of $212,000 were in Of this amount, $183,000 was for direct labour and the remainder was for mdirect labour d. Additional manufacturing overhead costs of $189,000 were incurred. Required: Record the above transactions in journal entries.

Explanation / Answer

Journal Entries

date

explanation

debit

credit

A-

raw material

45000

accounts payable

45000

B-

work in progress

70000

manufacturing overhead

55000

raw material

125000

C-

work in progress

183000

manufacturing overhead

29000

wages payable

212000

D-

manufacturing overheads

189000

various accounts

189000

Journal Entries

date

explanation

debit

credit

A-

raw material

45000

accounts payable

45000

B-

work in progress

70000

manufacturing overhead

55000

raw material

125000

C-

work in progress

183000

manufacturing overhead

29000

wages payable

212000

D-

manufacturing overheads

189000

various accounts

189000

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