Question $3$

ACDC Corp. builds components for electrical substations around the city of Vancouver.

During the month of May $2024,$ the following events occurred:

a$.$ Purchased materials on account for $$111,260.$

b$.$ Requisitioned materials totalling $$59,200$ for use in production: $$19,700$ for Job $503$ and

the remainder for Job $504.$

c$.$ Recorded direct labour payroll of $$39,480$ at an average wage of $$21$ per hour. Job $503$

required $620$ direct labour hours; Job $504$ required $1,260$ direct labour hours.

d$.$ Incurred and paid $($in cash$)$ actual overhead of $$37,650.$

e$.$ Charged overhead to production $($for Job $503$ and Job $504)$ at a rate of $$18$ per direct

labour hour.

f$.$ Completed Job $503$ and transferred it to Finished Goods.

g$.$ Sold Job $501$ on account for cost plus $25$ percent.

Balances as at May $1,2024$:

Required:

Prepare the journal entries for events a$.$ through $g.$

Hint $1$: track costs for Job $503$ separately from Job $504$ in order to complete the JE for $f.$

Hint $2$: transaction g$.$ requires two JEs ACDC Corp. builds components for electrical substations around the city of Vancouver. During the month of May $2024,$ the following events occurred: a$.$ Purchased materials on account for $$111,260.$ b$.$ Requisitioned materials totalling $$59,200$ for use in production: $$19,700$ for Job $503$ and the remainder for Job $504.$ c$.$ Recorded direct labour payroll of $$39,480$ at an average wage of $$21$ per hour. Job $503$ required $620$ direct labour hours; Job $504$ required $1,260$ direct labour hours. d$.$ Incurred and paid $($in cash$)$ actual overhead of $$37,650.$ e$.$ Charged overhead to production $($for Job $503$ and Job $504)$ at a rate of $$18$ per direct labour hour. f$.$ Completed Job $503$ and transferred it to Finished Goods. g$.$ Sold Job $501$ on account for cost plus $25$ percent. Balances as at May $1,2024$: Raw materials Work in Progress $$ Job $503$ Finished Goods $$ Job $501$ Required: $$10,70012,85014,8451.$ Prepare the journal entries for events a$.$ through g$.$ Hint $1$: track costs for Job $503$ separately from Job $504$ in order to complete the JE for f$.$ Hint $2$: transaction g$.$ requires two JEs