Question
. ABC Company had the following inventories on May 1, 2019(amounts in SR) Raw Material30,000 Finished Goods40,000 WIP - Material20,000 WIP - Labor20,000 WIP -
. ABC Company had the following inventories on May 1, 2019(amounts in SR)
Raw Material30,000
Finished Goods40,000
WIP - Material20,000
WIP - Labor20,000
WIP - Manufacturing overhead15,000
During the month, the cost of material purchased was 130,000 direct labor cost incurred was 140,000 and factory overhead applicable to production was 70,000, on May 31, inventories were:
Raw Material40,000
Finished Goods50,000
WIP - Material15,000
WIP - Labor25,000
WIP Manufacturing overhead 10,000
Required:
Prepare Journal entries on May 31, to show the flow of cost through the proper summary T accounts.
Assume that sales values were 500,000 on credit.
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