Question
5. Josie Inc. has provided the following information for 2017. Prepare the journal entries to record these transactions. a. Purchased raw materials on account for
5. Josie Inc. has provided the following information for 2017. Prepare the journal entries to record these transactions. a. Purchased raw materials on account for $120,000. b. Issued $115,000 in raw materials to production ($22,000 were not traceable to specific jobs). c. Incurred $115,000 in direct labor costs (14,375 hours) and $62,500 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $24,000 (paid in cash); depreciation on equipment $20,000; custodial supplies $7,500 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $75,000; sales commissions $88,000. f. Applied manufacturing overhead to jobs in process at a rate of $10 per direct labor hour. g. Completed jobs costing a total of $345,000. h. Sold jobs for $425,000 on account. The cost of the jobs was $342,000. i. Closed the Manufacturing Overhead account balance.
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