Question
26. Quark Spy Equipment manufactures espionage equipment. Quark uses a job-order costing system and applies overhead to jobs on the basis of direct labor-hours. For
26.
Quark Spy Equipment manufactures espionage equipment. Quark uses a job-order costing system and applies overhead to jobs on the basis of direct labor-hours. For the current year, Quark estimated that it would work 169,000 direct labor-hours and incur $25,012,000 of manufacturing overhead cost. The following summarized information relates to January of the current year. The raw materials purchased include both direct and indirect materials. |
Raw materials purchased on account | $ | 1,765,600 |
Direct materials requisitioned into production | $ | 1,625,600 |
Indirect materials requisitioned into production | $ | 123,300 |
Direct labor cost (9,900 hours @ $33 per hour) | $ | 326,700 |
Indirect labor cost (10,700 hours @ $20 per hour) | $ | 214,000 |
Depreciation on the factory building | $ | 249,700 |
Depreciation on the factory equipment | $ | 1,167,500 |
Utilities for the factory | $ | 105,100 |
Cost of jobs finished | $ | 3,293,800 |
Cost of jobs sold | $ | 3,143,400 |
Sales (all on account) | $ | 4,715,700 |
|
Required: |
Prepare journal entries to record Quark's transactions for the month of January. Do not close out the manufacturing overhead account. (Omit $ sign in your response.) |
General Journal | Debit | Credit | |
a. | (Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableAccumulated depreciation, buildingAccumulated depreciation, equipment | ||
(Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | |||
b. | (Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | ||
(Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | |||
c. | (Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | ||
(Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | |||
d. | (Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | ||
(Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | |||
e. | (Click to select)Accounts receivableCost of goods soldFinished goodsSalaries and wages payableManufacturing overheadWork in processAccounts payable | ||
(Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableAccounts receivableFinished goods | |||
f. | (Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableCost of goods soldAccounts receivable | ||
(Click to select)Raw materialsAccounts payableSalaries and wages payableWork in processManufacturing overheadFinished goodsAccounts receivable | |||
g. | (Click to select)Raw materialsAccounts payableWork in processManufacturing overheadAccumulated depreciation, buildingAccumulated depreciation, equipmentCost of goods sold | ||
(Click to select)Utilities payable (or cash)Accumulated depreciation, equipmentFinished goodsManufacturing overheadAccumulated depreciation, buildingWork in processSalaries and wages payable | |||
(Click to select)Accumulated depreciation, buildingAccumulated depreciation, equipmentFinished goodsWork in processSalaries and wages payableManufacturing overheadUtilities payable (or cash) | |||
(Click to select)Utilities payable (or cash)Accumulated depreciation, buildingManufacturing overheadFinished goodsAccumulated depreciation, equipmentWork in processSalaries and wages payable | |||
h. | (Click to select)Raw materialsAccounts payableWork in processFinished goodsAccumulated depreciation, buildingAccumulated depreciation, equipmentAccounts receivable | ||
(Click to select)Raw materialsAccounts payableWork in processManufacturing overheadSalaries and wages payableFinished goodsCost of goods sold | |||
i. | (Click to select)Raw materialsAccounts payableWork in processFinished goodsManufacturing overheadSalaries and wages payableCost of goods sold | ||
(Click to select)Raw materialsAccounts payableFinished goodsManufacturing overheadSalaries and wages payableAccumulated depreciation, buildingAccumulated depreciation, equipment | |||
j. | (Click to select)Accounts receivableAccumulated depreciation, buildingAccumulated depreciation, equipmentCost of goods soldFinished goodsSalaries and wages payableManufacturing overhead | ||
(Click to select)Raw materialsAccounts payableSalesWork in processManufacturing overheadAccounts receivableCost of goods sold | |||
Thanks for your help |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started