Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Journal Entries for a Manufacturer On December 1 Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were compete as

image text in transcribedimage text in transcribed

image text in transcribed

image text in transcribed

Journal Entries for a Manufacturer On December 1 Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were compete as o mater als an 50% compete as o labor and overhead. December costs o o : Materials. $6,000 Labor ....2,000 2,000 During December the following transactions occurred: a. Purchased materials costing $50,000 on account. b. Placed direct materials costing $49,000 into production c.Incurred production wages totaling $50,500. d. Incurred overhead costs for December: $20,000 Utilities 28,000 (Cash payment) Supplies e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses he weighted average cost method. The ending inventory of work in process consisted of 1 000 units that were completed a to materia an 25% compete as t labor and overhead Required: Prepare the journal entries to record the following December transactions 2,000 (use Supplies Inventory)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions

Question

Distinguish between HRD and human resource management (HRM)

Answered: 1 week ago

Question

Define what the four-fifths rule is.

Answered: 1 week ago