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PLZ HELP ASAP IM ON TIME CRUNCH!!! The following activities were recorded by the Electric Ice Company during the month of June. The company uses
PLZ HELP ASAP IM ON TIME CRUNCH!!!
The following activities were recorded by the Electric Ice Company during the month of June. The company uses a job costing system, and factory overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,050,000 of factory overhead costs and use 70,000 machine hours. (a) Purchased 100,000 pounds of materials on account. The cost was $2.00 per pound. (b) Issued 130,000 pounds of materials to production, of which 20,000 pounds were used as indirect materials. Assume all materials are at $2 per pound. (c) Incurred $130,000 of direct labor costs and $25,000 of indirect labor costs. (d) Recorded depreciation on equipment for the month, $37,000. (e) Recorded $13,000 of insurance costs for the manufacturing property. (f) Paid $7,000 cash for utilities and other miscellaneous items for the manufacturing plant. (g) Completed job X costing $22,000 and job Y costing $70,000 during the month and transferred them to Finished Goods inventory account. (h) Shipped job Y to the customer during the month. The job was invoiced at 30 percent above cost. (i) Used 11,000 machine hours during June. Required: Prepare journal entries to record the events that occurred during June. Full credit will not be given if relevant calculations are not shown Step by Step Solution
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