5-David Manufacturing Company uses a job order cost accounting system and keeps
ID: 2575561 • Letter: 5
Question
5-David Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June. (20 pts) June 1 Purchased raw materials for $20,000 on account. 8 Raw materials requisitioned by production: Direct materials Indirect materials $8,000 1,000 15 25 25 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. Incurred $108,000 of factory labor. Time tickets indicated the following $84,000 Direct Labor (7,000 hrs x $12 per hr) Indirect Labor (3,000 hrs $8 per hr) = 24,000 $108,000 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. 25 Goods costing $18,000 were completed in the factory and were transferred to finished goods. 28 30 Goods costing $15,000 were sold for $20,000 on account.Explanation / Answer
Jun-1. Raw material inventory 20,000
Accounts payable. 20,000
Jun-8. Work in process inventory. 8000
Manufacturing overhead. 1000
Raw material inventory. 9000
Jun 15- Manufacturing overhead. 10,100
Cash. 10,100
Jun 25- Factory labor. 108,000
Factory wages payable. 108,000
Jun 25- Work in process inventory. 84,000
Manufacturing overhead. 24,000
Factory labor. 108,000
Jun 25- Work in process inventory. 49,000
Manufacturing overhead. 49,000 (7*7000)
Jun 28- Finished goods inventory. 18,000
Work in process inventory. 18,000
Jun 30- Accounts receivable. 20,000
Cost of goods sold. 15,000
Sales revenue. 20,000
Finished goods inventory. 15,000
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