Prepare journal entries for the following transactions:

ABC Company had the following beginning balances as of 1/1/20X1:

Raw Materials $7,000

Work in Process 30,000

Finished Goods 10,000

Refer to the partial chart of accounts or ledger for account names.

a. Raw materials were purchased on account, $60,000.

b. Raw materials were requisitioned for use in production, $52,000. ($50,000 direct and $2,000 indirect).

c. Accrual of factory wages $60,000; and maintenance workers for the factory $15,000.

d. The following costs were incurred on the factory; Utilities $21,000, Equipment Rental $16,000

and cable, internet, phone for the factory $3,000.

e. The accrual of property taxes on the factory was made in the amount of $13,000.

f. The expiration of prepaid medical insurance on factory workers was made in the amount of $18,000.

g. Depreciation was recorded on the factory equipment in the amount of $18,000.

Application of Manufacturing Overhead is illustrated on Pages 93 & 94

h. XYZ Company applies overhead costs based on machine hours worked. For 20X1 the company

estimated that it will work 15,000 machine hours and incur $90,000 in manufacturing overhead costs.

The journal entry is made to apply Manufacturing Overhead. A total of 15,000 machine hours have occurred.

i. The accrual of management salaries $21,000 and office staff salaries $9,000 was made.

j. Depreciation on office equipment was made in the amount of $7,000.

k. Advertising for the period was accrued in the amount of $42,000.

l. Cable, internet, and phone expenses for Sales Offices was $38,000 and General & Administrative was $4,000.

m. $158,000 of goods were completed and transferred to the finished goods department.

n1. Sold $500,000 (Sales Price) on account.

n2.The goods had a cost of $118,500.