Answer:
Step-by-step explanation:
CHECK THE COMPLETE QUESTION;
Prepare summary Journal entries to record the following transactions for a company in its first month of operations 00:52:15 a. Raw materials purchased on account, $80,000. b. Direct materials used in production, $37.000. Indirect materials used in production, $12,000 c. Pald cash for factory payroll, $35.000. Or this total, $25,000 is for direct labor and $10,000 is for indirect labor d. Pald cash for other actual overhead costs, $7.000. e. Applied overhead at the rate of 120% of direct labor cost. . Transferred cost of jobs completed to finished goods, $50,470. g. Sold jobs on account for $72,100. The jobs had a cost of $50,470.
This is the journal entries below
a. Raw materials inventory A/c Dr $80,000
To Accounts payable A/c $80,000
We were told is raw material purchased on credit.
b. Work in progress inventory A/c Dr $37,000
To Raw materials inventory A/c $37,000
[Utilized for production here]
Factory overhead A/c Dr $12,000
To Raw materials inventory A/c $12,000
[ Utilized as indirect material ]
C)Work in progress inventory A/c Dr $25,000
Factory overhead A/c Dr $10,000
To cash A/c $35,000
[Pald cash for factory payroll]
d. Factory overhead A/c Dr $7000
To Cash A/c $7,000
[Pald cash for other actual overhead costs]
e. Work in progress inventory A/c Dr $31,250 ($25,000 × 125/100)
To Factory overhead A/c $31,250
[Applied overhead at 125%]
F) finished goods inventory A/c Dr $50,470
To Work in progress inventory A/c $50,470
[The cost of jobs completed to finished goods]
g. Accounts receivable A/c Dr $$72,100
To Sales A/c $72,100
[ sold on account job]
Cost of goods sold A/c Dr $72,100
To Finished goods inventory A/c $50,470