Question
Malone, Inc. uses a job-order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of
Malone, Inc. uses a job-order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of July: Jul 2 Purchased raw materials for $23,000 on account. 4 Purchased office supplies for $750 cash. 9 Raw materials requisitioned by production: Direct materials $12,300 Indirect materials 1,760 14 Paid factory utilities, $3,100 and repairs for factory equipment, $3,600. 15 Received property tax bill of $9,850 and accrued for payment at month-end. Sales office space is 750 square feet and factory space is 6,450 square feet. 21 Incurred $37,800 of factory labour. 26 Time tickets indicated the following for job 1238: Direct Labour (2,700 hrs $15 per hr) = $40,500 Indirect Labour (950 hrs $12.50 per hr) = 11,875 $52,375 28 Applied manufacturing overhead to production based on a predetermined overhead rate of $7.50 per direct labour hour worked. 28 Goods costing $63,000 were completed and transferred to finished goods. 30 Goods costing $62,000 were sold for $75,000 on account.
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