Question
Shellenback Inc. has provided the following information for 20x5: a. Purchased raw materials on account for $200,000. b. Issued $185,000 in raw materials to production
Shellenback Inc. has provided the following information for 20x5:
a. Purchased raw materials on account for $200,000. b. Issued $185,000 in raw materials to production ($12,000 were not traceable to specific jobs). c. Incurred $155,000 in direct labor costs (14,750 hours), $52,500 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $22,000 (paid in cash); depreciation on equipment $26,000; factory utilities $13,500 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $55,000; sales commissions $58,000. f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour. g. Completed jobs costing a total of $457,000. h. Sold jobs for $735,000 on account. The cost of the jobs was $441,000. i. Closed the manufacturing overhead account balance.
Prepare the journal entries to record these transactions. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started