Answer:
A. Dr Raw Material Inventory $40,000
Cr Accounts Payable $40,000
B. Dr Work in process Inventory $35,000
Cr Raw Material Inventory $35,000
C. Dr Work in process Inventory $60,000
Dr Factory Overheads $30,000
Dr Selling and administrative expenses $25,000
Cr Wages Payable $90,000
Cr Salaries Payable $25,000
D. Dr Factory Overheads $15,000
Cr Expense Payable $15,000
E. Dr Factory Overheads $50,000
Cr Accumulated Depreciation- Factory Equipment $50,000
F. Dr Selling and administrative expenses $80,000
Cr Expense Payable $80,000
G. Dr Work in process Inventory $90,000
Cr Factory Overheads $90,000
H. Dr Finished Goods Inventory $180,000
Cr Work in process Inventory $180,000
I. Dr Cost of goods sold $150,000
Cr Finished Goods Inventory $150,000
Step-by-step explanation:
Preparation of Journal entries for Simkins Corporation
a. Based on the information given we were told that Raw materials purchased was the amount of $40,000 which means that the Journal entry will be "
Dr Raw Material Inventory $40,000
Cr Accounts Payable $40,000
b. Based on the information given we were told that Raw materials that was used in production was the amount of $35,000 which means that the Journal entry will be:
Dr Work in process Inventory $35,000
Cr Raw Material Inventory $35,000
c. Based on the information given we were told that Salaries and wages costs include Direct labor cost of the amount of $60,000 Indirect labor cost of the amount of $30,000 and Sales salaries if the amount of $25,000 which means that the Journal entry will be:
Dr Work in process Inventory $60,000
Dr Factory Overheads $30,000
Dr Selling and administrative expenses $25,000
Cr Wages Payable $90,000
Cr Salaries Payable $25,000
d. Based on the information given we were told that Factory utility costs the amount of $15,000 which means that the Journal entry will be:
Dr Factory Overheads $15,000
Cr Expense Payable $15,000
e. Based on the information given we were told that Depreciation on factory equipment cost the amount of $50,000 which means that the Journal entry will be:
Dr Factory Overheads $50,000
Cr Accumulated Depreciation- Factory Equipment $50,000
f. Based on the information given we were told that Advertising expense cost the amount of $80,000 which means that the Journal entry will be:
Dr Selling and administrative expenses $80,000
Cr Expense Payable $80,000
g. Based on the information given we were told that the company has predetermined rate of 150% of direct labor cost which means that the Journal entry will be:
Dr Work in process Inventory $90,000
Cr Factory Overheads $90,000
h. Based on the information given we were told that the Cost of Goods Manufactured for the month was $180,000 which means that the Journal entry will be:
Dr Finished Goods Inventory $180,000
Cr Work in process Inventory $180,000
i. Based on the information given we were told that Cost of Goods Sold for the month was $150,000 which means that the Journal entry will be:
Dr Cost of goods sold $150,000
Cr Finished Goods Inventory $150,000