Journal entries; account analysis LO_1,4 Selected account balances and transactions of Missoula Manufacturing Co. follow:

May Transactions

a. Purchased raw materials and factory supplies on account at costs of $45,000 and $10,000, respectively. (One inventory account is maintained.)

b. Incurred wages during the month of $65,000 ($15,000 was for indirect labor).

c. Incurred factory overhead costs in the amount of $42,000 on account.

d. Made adjusting entries to record $7,000 of factory overhead (credit Various Credits). Factory overhead was closed to Work in Process.
Completed jobs were transferred to Finished Goods, and the cost of jobs sold was charged to Cost of Goods Sold.

Required:
Prepare journal entries for the following:
1.The purchase of raw materials and factory supplies.
2. The issuance of raw materials and supplies into production. (Hint: Be certain to consider the beginning and ending balances of raw materials and supplies as well as the amount of the purchases.)
3. The recording of the payroll.
4. The distribution of the payroll.
5. The payment of the payroll.
6. The recording of factory overhead incurred.
7. The adjusting entry for factory overhead.
8. The entry to transfer factory overhead costs to Work in Process.
9. The entry to transfer the cost of completed work to Finished Goods.
(Hint: Be sure to consider the beginning and ending balances of Work in Process as well as the costs added to Work in Process this period.)
10. The entry to record the cost of goods sold. (Hint: Be sure to consider the beginning and ending balances of Finished Goods as well as the cost of the goods finished during the month.)

Transcribed Image Text:

Account Balances May I May 31 $ 5.500 800 900 3,500 6,500 12,000 13,200 Raw materials.... Factory supplies Work in process. Finished goods. $ 6,000