[lego24]

Problem 1:

A Corporation had the following transactions during its first month of operations:

1. Purchased raw materials on account, $85,000

2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials

3. Factory labor costs incurred were $125,000 of which $100,000 pertained to factory wages payable & $25,000 pertained to employer payroll taxes payable

4. Time tickets indicated that $104,000 was direct labor & $21,000 was indirect labor.

5. Overhead costs incurred on account were $112,000.

6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.

7. Goods costing $135,000 are still incomplete at the end of the month; the other goods were comopleted & transferred to finished goods.

8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.

Instructions:
Journalize the above transactions for the Corporation




Problem 2:

A manufacturing company produces a product in 2 departments: (1) mixing and (2) finishing. The company uses a process cost accounting system.

(a) Purchased raw materials for $50,000 on account.

(b) Raw materials requisitioned for production were:
Direct Materials
Mixing Department $20,000
Finishing Department $14,000

(c) Incurred labor costs of $80,000.

(d) Factory labor used:
Mixing Department $48,000
Finishing Department $32,000

(e) Manufacturing overhead is applied to the product based on machine hours used in each department:
Mixing Department - 600 machine hours at $45 per machine hour
Finishing Department - 500 machine hours at $30 per machine hour

(f) Units costing $66,000 were completed in the Mixing Department & were transferred to the Finishing Department.

(g) Units costing $60,000 were completed in the Finishing Department & were transferred to the finished goods.

(h) Finished goods costing $30,000 were sold on account for $45,000.

Instructions:
Prepare the journal entries to record the preceding transactions for the manufacturing company

[codyman144]

Nice of you to cut and pase your homework/test question on AMHD please read this:

Ask Me Help Desk - Announcements in Forum : Homework Help

[lego24]

Well I just posted the question & didn't get a chance to put what I have so far up. This is what I have & if you could let me know if I'm going in the right direction or if I'm completely wrong. There are a few I'm stuck on & I'm pretty sure it's not the right set up:


1. Raw Material Inventory 85,000
Accounts Payable 85,000

2. Work in Process Inventory 24,000
Manufacturing Overhead 6,000
Raw Materials Inventory 30,000

4. Work in Process Inventory 104,000
Manufacturing Overhead 21,000
Factory Labor 125,000

5. Work in Process Inventory 112,000
Manufacturing Overhead 112,000

8. Accounts Receivable 130,000
Sales 130,000

Cost of Goods Sold 100,000
Finished Goods Inventory 100,000

[codyman144]

1. Looks good
2. Try again… you received something but didn't pay for it
4. Why are you putting labor to inventory? Try again
5. Again overtime is a labor cost not inventory
8. Looks good.