Respuesta :
Answer:
Description Dr Cr
a. Raw Materials $94000
Account payable $ 94000
b. Work In Process $ 40500
Direct Materials $40500
c. Work In Process $ 25000
Indirect Materials $25000
d. Payroll (Liabilities) $ 70000
Cash / Bank $ 70000
e. Direct Labor $ 50000
Indirect labor $ 20000
Payroll (Liabilities) $ 70000
f. Overhead $ 7875
Cash/bank $ 7875
g. Work in process $ 62500
Applied overhead ( 125 % $62500
of direct cost)
h. Finished goods $74000
Work in Process $ 74000
i. Account Receivable $ 105000
Sale/Revenue $105000
Cost of Goods sold $ 74000
Finished Goods $ 74000
Explanation:
Summary of Journal entries are given below :
a. Raw materials purchased on account, $94,000.
Description Dr Cr
Raw Materials $94000
Account payable $ 94000
b.Direct materials used in production, $40,500.
Work In Process $ 40500
Direct Materials $40500
c. Indirect materials used in production, $25,000.
Work In Process $ 25000
d. Paid cash for factory payroll, $70,000.
Payroll (Liabilities) $ 70000
Cash / Bank $ 70000
e. Of this total, $50,000 is for direct labor and $20,000 is for indirect labor.
Direct Labor $ 50000
Indirect labor $ 20000
Payroll (Liabilities) $ 70000
f. Paid cash for other actual overhead costs, $7,875.
Overhead $ 7875
g. Applied overhead at the rate of 125% of direct labor cost.
Work in process $ 62500
Applied overhead ( 125 % $62500
of direct cost)
h. Transferred cost of jobs completed to finished goods, $74,000.
Finished goods $74000
Work in Process $ 74000
i. Sold jobs on account for $105,000. The jobs had a cost of $74,000.
Account Receivable $ 105000
Sale/Revenue $105000
Cost of Goods sold $ 74000
Finished Goods $ 74000
