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Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations: 1. Purchased materials costing $800,000. 2. Used direct
Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations:
1. | Purchased materials costing $800,000. |
2. | Used direct materials in production costing $485,000. |
3. | Applied direct labor costs of $500,000 to various jobs. |
4. | Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) |
5. | Incurred actual manufacturing overhead costs of $245,000 (credit "Various Accounts"). |
6. | Transferred completed jobs costing $745,000 to finished goods. |
7. | Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000. |
8. | Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30. |
a. | Prepare a journal entry for each of the eight transactions listed above. (Omit the "$" sign in your response.) |
General Journal | Debit | Credit | |
1. | |||
2. | |||
3. | |||
4. | |||
5. | |||
6. | |||
7. | |||
8. | |||
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b. | Compute the balance of the Cost of Goods Sold account at June 30. (Omit the "$" sign in your response.) |
Cost of goods sold | $ |
c. | Determine the company's inventory balances at the end of June. (Omit the "$" sign in your response.) |
Materials inventory | $ |
Work in process inventory | $ |
Finished goods inventory | $ |
|
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