Question 7 Partially correct Mark 3.80 out of 4.29 p Flag question Journal entries; assigning costs to jobs; cost accumulation lalani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $332,400 Work in Process Inventory 1,512,600 Cost of Goods Sold 4,864,000 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $586,400 Job #78 266,600 Job #82 659,600 The following transactions occurred during September: 09-01 Purchased $1,940,000 of raw material on account. 09-04 Issued $1,900,000 of raw material as follows: Job #75, $289,600; Job #78 $252,600 ; Job #82, $992,200 ; Job #86, $312,400; and indirect material, $53,200 09-15 Prepared and paid the $757,000 factory payroll for September 1-15. Analysis of this payroll showed the following information: Job #75 Job #78 Job #82 Job #86 Indirect labor wages Hours Dollars 9,660 $84,600 26,320 267,200 20,300 203,000 10,280 110,800 91,400 09-15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $39,600; rent, $70,600; and accounts payable (accrued in August), $196,800. 09-24 Purchased raw material on account, $624,000. 09-25 Issued $716,400 of direct material as follows: Job #78, $154,800; Job #82, $212,600; Job #86, $349,000; indirect material issued was $55,800. 09-30 Recorded additional factory overhead costs as follows: depreciation, $809,000; expired prepaid insurance, $165,400; and accrued taxes and licenses, $232,400. 09-30 Recorded and paid the factory payroll for September 16-30 of $714,400. Analysis of the payroll follows: Hours Dollars Job #78 8,940 $177,400 Job #82 13,650 228,400 Job #86 9,980 243,600 Indirect labor wages 65,000 09-30 Applied overhead for the second half of the month to jobs. a. Journalize the September transactions. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit 09-01 Raw Material Inventory 1,940,000 0 Accounts Payable 07 1,940,000 To record raw materials purchased on account 09-04 Work in Process Inventory X 1,846,800 x 0 Manufacturing Overhead 53,200 x 0 Raw Material Inventory 0 1,900,000 To record the direct materials issued 09-15 Finished Goods Inventory X 665,600 x 0 Manufacturing Overhead 91,400 x 0 Cash 0 757,000 To record labor costs 09-15 Work in Process Inventory 832,000 07 Manufacturing Overhead 07 832,000 To record applied overhead 09-15 Finished Goods Inventory 1,081,350 0 Work in Process Inventory 0 1,081,350 To record completed jobs 09-15 Accounts Receivable 1,405,755 0 Sales 07 1,405,755 To record sales 09-15 Cost of Goods Sold 1,081,350 0 Finished Goods Inventory 0 1,081,350 To record the cost of sales 09-20 Accounts Payable 110,200 x 0 Sales 196,800 X 0 Cash 0 307,000 To record miscellaneous payments 09-24 Raw Material Inventory 624,000 0 Accounts Payable 0 624,000 To record purchase of raw materials 09-25 Work in Process Inventory 716,400 x 0 Manufacturing Overhead X 55,800 x 0 Raw Material Inventory 0 772,200 To record the direct materials issued 09-30 Manufacturing Overhead 1,206,800 0 Accumulated Depreciation 0 809,000 Prepaid Insurance 0 165,400 Taxes & Licenses Payable 0 232,400 To record additional factory overhead 09-30 Work in Process Inventory 649,400 x 0 Manufacturing Overhead X 65,000 x 0 Cash 0 714,400 To record labor costs 09-30 Work in Process Inventory 407,125 0 Manufacturing Overhead 0 407,125 To record applied overhead