Question
Nona Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the
Nona Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.
| June | 1 | Purchased raw materials for $22,000 on account. | |||||||
| 8 | Raw materials requisitioned by production: | ||||||||
| Direct materials | $8,500 | ||||||||
| Indirect materials | 1,500 | ||||||||
| 15 | Paid factory utilities, $2,400 and repairs for factory equipment, $7,500. | ||||||||
| 25 | Incurred $98,000 of factory labor. | ||||||||
| 25 | Time tickets indicated the following: | ||||||||
| Direct Labor | (6,000 hrs. @ $13 per hr.) | = | $78,000 | ||||||
| Indirect Labor | (2,500 hrs. @ $8 per hr.) | = | 20,000 | ||||||
| $98,000 | |||||||||
| 25 | Applied manufacturing overhead to production based on a predetermined overhead rate of $8 per direct labor hour worked | ||||||||
| 28 | Goods costing $20,000 were completed in the factory and were transferred to finished goods. | ||||||||
| 30 | Goods costing $16,000 were sold for $23,000 on account. | ||||||||
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