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Need help with journal entries, and how you got the numbers. As Pat's accountant, you note the manufacturing of furniture will be completed in individual
Need help with journal entries, and how you got the numbers.
As Pat's accountant, you note the manufacturing of furniture will be completed in individual and identifiable jobs so you set up a job-order costing system to record and process the costs of production. In consultation with Pat you decide that overhead should be applied based upon direct labor hour. Prepare journal entries to record the above transactions in the appropriate place in the General Journal in Packet 2. Post the entries you recorded to the T-accounts in Packet 2. Note that you need only post amounts to the six T-accounts listed in Packet 2. Examine the balance in the Manufacturing Overhead account and prepare a journal entry to close any balance in the Manufacturing Overhead account to the Cost of Goods Sold account. Post the entry to the T-accounts in Packet 2. Prepare a partial income statement in the space provided in Packet 2 for ONLY the 60 units of bookcases sold at the end of the month listing ONLY sales, cost of goods sold, and gross profitStep by Step Solution
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