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114 IV. AJ Smith Compay has the following beginning inventory balances at 1/1/2019 115 116 117 118 119 120 121 122 123 124 125 Beginning
114 IV. AJ Smith Compay has the following beginning inventory balances at 1/1/2019 115 116 117 118 119 120 121 122 123 124 125 Beginning Raw materials $ 16,000 Beginning Work in process $ 25,000 all in Job 112 Finished Goods $ (no beginning inventory in finished goods) AJ Smith company had the following transactions in January 1. Purchased Raw Materials on account for 200,000 2. Salaries paid to factory workers was $60,000. All paid in cash. 3. Factory rent of 70,000 and utility bills for 45,000 for the month were paid. and Depreciation on factory equipment was $90,000. 4. Material and labor was charged to jobs in WIP in January as follows: Material Labor Machine Hours Job 111 $ 40,000 $ 15,000 17,000 Job 112 $ 70,000 $ 20,000 21,000 Job 113 $ 50,000 $ 5,000 22.000 General use $ 10,000 $ 20,000 Total $ 170,000 $ 60,000 60,000 Make a journal for the material and the labor costs to jobs (2 Journals) 126 327 128 129 130 131 132 133 135 136 137 138 139 5. Manufacturing overhead is applied at a rate of $4 per machine hour. There were 60,000 machine hours in the month. Make the entry to apply overhead. 6. Jobs 111 and 112 were completed and transferred to finished Goods 7. Job 111 was sold for $300,000. Make the journals for this. (include Cost) 8. What is the over or under applied overhead amount over or under (choose one) 9. What is the total ending inventory incl RM, WIP and FG at 1/31/2019 (Remember to count beginning inventory) Create Journal entries for each transaction below: 140 141 142 143 144 Credit Create Journal entries for each transaction below: Account 1 Raw materials inventory Account Payable Debit 200000 145 146 200000 147 148 149 60000 2 Salaries Wages Payable Cash 60000 150 151 205000 152 163 3 Manufacturing Overhead Cash Accumulated Depreciation 115000 90000 154 155 156 4 Work In Process Inventory Manufactoring Overhead Raw Material Inventory 160000 10000 157 158 170000 159 160 161 162 163 45000 20000 16 4 (2 Journals for #4 one materials and one labor) Work in process inventory Manufactoring Overhead Wages Payable 165 65000 166 167 168 169 170 240000 (60000*4) 5 Work in Process Inventory Manufacturing Overhead 171 240000 172 173 174 175 6 Finished Goods Inventory Work in Process Inventory 314,000 (140000+174000) 314,000 176 300000 177 178 179 180 181 182 30000 7 Accounts Receivable Sales Revenue Cost of Goods Sold Finished Goods Inventory 140000 140000 183 184 185 186 Numbers 8 and 9 are not journals 187
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