Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following transactions took place in Ahmed Manufacturing Company, assume that the company uses the perpetual system to account for the inventory. Journalize the transactions,
The following transactions took place in Ahmed Manufacturing Company, assume that the company uses the perpetual system to account for the inventory.
Journalize the transactions,
Post them to the general ledger book, and
Calculate the balances of the following accounts: materials control, work-in process control, and finished goods control.
1. Purchase of Materials paying AED 200,000 cash.
2. Requisition of AED 150,000 direct materials and AED 40,000 Indirect Materials (OH) into production.
3. Incurred AED 55,000 Direct Labor Wages and AED 40,000 Indirect (OH) Labor Wages
4. AED 70,000 of various actual Indirect Costs incurred (including AED 28,000 Depreciation)
5. Indirect Costs (overhead) to be allocated to the Work-in-Process account are AED 80,000.
6. AED 220,000 is the cost of Products completed and transferred out of production in preparation for being sold
7. Products are sold to customers on credit for AED 260,000, while the cost is AED 185,000.
8. Incurred (paid cash) AED 20,000 Marketing costs and AED35,000 customer service costs.
Please answer it
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