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Clipboard Font Alignment Number Cell Cell Styles F41 x fx 132,000 A B D E F G H 9 1 Job Cost Journal Entries 2

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Clipboard Font Alignment Number Cell Cell Styles F41 x fx 132,000 A B D E F G H 9 1 Job Cost Journal Entries 2 Prior to the beginning of 2019, Lowe Company estimated that it would in- 3 cur $176,000 of manufacturing overhead cost during 2019, using 16,000 direct labor hours to produce 4 the desired volume of goods. On January 1, 2019, beginning balances of Materials Inventory, Work- 5 in-Process Inventory, and Finished Goods Inventory were $28,000,5-0, and $43,000, respectively. 6 7 Required 8 Prepare general journal entries to record the following for 2019: 10 a. Purchased materials on account, $39,000. 11 b. Of the total dollar value of materials used, $31,000 represented direct materials and $11,000 12 indirect materials 13 c. Determined total factory labor, $135,000 (15,000 hrs. @ $9/hr.). 14 d. Of the factory labor, 80% was direct and 20% indirect, 15 e. Applied manufacturing overhead based on direct labor hours to work-in-process, 16 1. Determined actual manufacturing overhead other than those items already recorded, $92,000. 17 (Credit Accounts Payable.) 18 g. Ending inventories of work-in-process and finished goods were $32,000 and $57,000, respec- 19 tively. Determine the cost of finished goods (credit WIP) and the cost of goods sold (credit FG 20 Inventory). Make separate entries. 21 h. Transferred the balance in Manufacturing Overhead to Cost of Goods Sold 22 23 24 25 Item 26 a. 27 28 29 30 31 32 33 34 General Journal Description Material Inventory Accounts Payable Purchased materials on account. Debit Credit 39,000 39,000 WIP Inventory 31,000 Manufactoeing Overhad 11,000 Wapes Payable 42,000 To record requisition of direct material and indirect material Sheet1 + Enter CHAPTER 611 22

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