Exercise 17.7

Exercise 17.7 zelda Manufacturing Part A Journal Entries Debita Credite 70 record materials purchased on account (21 (76 record materials used on job) 13 To record labor used on jobs 14 "To record applied overhead) 15 (76 record actual overhead costs incurred) "To record completed and transferred jobs 17 (76 record jobs sold on account) "To record costs associated with jobs sold) "closed overapolled manufacturing overhead) Part E Cost of goode sold (unadjusted) Overapplied overhead (gee entry &. part a) Coat of goode Bold, June 30 Part C Beginning materials Inventory Purchases Materiale weed on varioue jobs Materiale Inventory, June 30 Beginning work In process Inventory Direct materials used on various lobe Direct labor charged to various jobs Manufacturing overhead applied Coat of Jobe completed & frameferred Work In process Inventory, June 30 Beginning finlehed goode Inventory Coate transferred from work In process Coate applied to lobe gold Finished goods Inventory, June 30Exercise 17.7 Zelda Manufacturing Part A Journal Entries Debita Credits (1) Accounts payable (21 Account receivable Cost of goods sold (4) Direct labor (5) Finished goods inventory Manufacturing overhead (7) Materials inventory Sales Various accounts Work in process inventory Part Coat Over Coat Part Beginning materials Inventory Purchased Materiale weed on varioue jobs Materiale Inventory, June 30 Beginning work in process Inventory Direct materials used on various jobe Direct labor charged to various jobs Manufacturing overhead applied Coat of jobe completed & traneferred Work In process Inventory, June 30 Beginning finished goode Inventory Coate transferred from work In process Coate applied to jobe sold Finished goods Inventory, June 30EXERCISE 17.7 Journal Entries, Cost Flows, and Determining Account Balances Zelda Manufacturing organized in June and recorded the following transactions during its first month of operations. 1. Purchased materials costing $800,000. 2. Used direct materials in production costing $485,000. 3. Applied direct labor costs of $500,000 to various jobs. 4. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) 5. Incurred actual manufacturing overhead costs of $245,000 (credit "Various Accounts"). 6. Transferred completed jobs costing $745,000 to finished goods. 7. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000. 8. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30. a. Prepare a journal entry for each of the eight transactions listed. b. Compute the balance of the Cost of Goods Sold account at June 30. c. Determine the company's inventory balances at the end of June