usiness urse Menu Journal Entries Paulson Manufacturing Company uses the perpetu

Question

usiness urse Menu Journal Entries Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The fol Paulson's transactions during July 2016 owing are July 5 Recelved material costing $3,000from a supplier. The material was purchased on account 9 Requisitioned $9,000 11 Recorded the factory payroll: $20,250 of direct labor and $2.250 of Indirect labor. 17 Incurred various overhead costs totaling $21,000. (Credit Accounts Payable.) 20 Applied $30,000 of manufacturing overhead to the products being manufactured 23 Completed product costing $24,000 and moved it to the warehouse. 26 Sold goods with a product cost of $4,500 on account for $7,500 of material for use in the factory,consisting of $7,500 of direct material and $1,500 of indirect material. a. and b. Record the transactions listed above in general journal form, post relevant portions to the four T-accounts set-up below, and balance the four accounts. General Journal Date Description Debit Credit July 5 july 9 Work in process inventory July 11 Work in process inventory

Explanation / Answer

Date Particulars Dr Amt. Cr. Amt. 5-Jul Materials Inventory              3,000 Accounts Payable            3,000 (record the purc hase of inventory) 9-Jul WIP Inventory              7,500 Manufacturing Overhead              1,500 Materials Inventory            9,000 (record the material issued for WIP & MOH) 11-Jul WIP Inventory           20,250 Manufacturing Overhead              2,250    Wages Payable          22,500 (record the factory payroll) 17-Jul Manufacturing Overhead           21,000 Accounts Payable          21,000 (Record the manufacturing overhead incurred) 20-Jul WIP Inventory           30,000 Manufacturing Overhead          30,000 (record the manufacturing overhead applied) 23-Jul Finished Goods Inventory           24,000 WIP Inventory          24,000 (Record the WIP completed & transferred to finished) 26-Jul Accounts Receivable              7,500 Sales            7,500 (Record the goods sold on account) 26-Jul Cost of Goods Sold              4,500 Finished Goods Inventory            4,500 (record the cost of goods sold) Materials Inventory Finished Goods Inventory Beg. Bal.    10,500.00      9,000.00 9-Jul Beg. Bal.    15,000.00    4,500.00 26-Jul 5-Jul      3,000.00 23-Jul    24,000.00 End. Bal.      4,500.00 End. Bal.    34,500.00 WIP Inventory Cost of Goods Sold Beg. Bal.    37,500.00    24,000.00 23-Jul Beg. Bal.    45,000.00 9-Jul      7,500.00 26-Jul      4,500.00 11-Jul    20,250.00 20-Jul    30,000.00 End. Bal.    71,250.00 End. Bal.    49,500.00

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