Question
Prepare summary journal entries to record the following transactions for a company in its first month of operations. A. Raw materials purchased on account, $100,000.
Prepare summary journal entries to record the following transactions for a company in its first month of operations.
A. Raw materials purchased on account, $100,000.
B. Direct materials used in production, $42,000. Indirect materials used in production, $15,000.
C. Paid cash for factory payroll, $50,000. Of this total, $36,000 is for direct labor and $14,000 is for indirect labor.
D. Paid cash for other actual overhead costs, $8,250.
E. Applied overhead at the rate of 120% of direct labor cost.
F. Transferred cost of jobs completed to finished goods, $68,175.
G. Sold jobs on account for $97,000. The jobs had a cost of $68,175.
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