a.

Incurred and paid Web site expenses, $2,900.

b.

Incurred manufacturing wages of $13,000, 75% of which was direct labor and 25% of which was indirect labor.

c.

Purchased raw materials on account, $15,000.

d.

Used in production: direct materials, $9,500; indirect materials, $2,500.

e.

Recorded manufacturing overhead: depreciation on plant, $16,000; plant insurance (previously paid), $1,600; plant property tax, $4,400 (credit Property Tax Payable).

f.

Allocated manufacturing overhead to jobs, 160% of direct labor costs.

g.

Completed production on jobs with costs of $32,000.

h.

Sold inventory on account, $28,000; cost of goods sold, $16,000.

i.

Adjusted for overallocated or underallocated overhead.

Journalize the transactions.

(Record debits first, then credits. Exclude explanations from any journal entries.)

a. Incurred and paid Web site expenses, $2,900.

Date			Accounts	Debit	Credit
a.

b. Incurred manufacturing wages of $13,000, 75% of which was direct labor and 25% of which was indirect labor.

Date			Accounts	Debit	Credit
b.

c. Purchased raw materials on account, $15,000.

Date			Accounts	Debit	Credit
c.

d. Used in production: direct materials, $9,500; indirect materials, $2,500.

Date			Accounts	Debit	Credit
d.

e. Recorded manufacturing overhead: depreciation on plant, $16,000; plant insurance (previously paid), $1,600; plant property tax, $4,400 (credit Property Tax Payable).

Date			Accounts	Debit	Credit
e.

f. Allocated manufacturing overhead to jobs, 160% of direct labor costs.

Date			Accounts	Debit	Credit
f.

g. Completed production on jobs with costs of $32,000.

Date			Accounts	Debit	Credit
g.

h. Sold inventory on account, $28,000; cost of goods sold, $16,000.

Begin by recording the revenue from the sales on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step.

Date			Accounts	Debit	Credit
h.

Now record the expense related to the sale.

Date			Accounts	Debit	Credit
h.

i. Adjusted for overallocated or underallocated overhead.

Date			Accounts	Debit	Credit
i.