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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials
$5,700 on account, factory labor $6,300 of which $5,500 relates to factory wages payable and $800 relates to payroll taxes
payable, and factory utilities payable $2,700.
Prepare separate journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Raw Materials Inventory
Jan. 31
31
31
(b)
Accounts Payable
(To record purchase of raw materials on account)
Factory Labor
(c)
Factory Wages Payable.
Employer Payroll Taxes Payable
(To record factory labor costs)
Manufacturing Overhead
Direct materials
Direct labor
Utilities Payable
Manufacturing overhead
(To record entry for utilities payable)
(b)
Milner Company is working on two job orders. The job cost sheets show the following.
Job 201 Job 202
$7,250
3,950
5,250
No. Account Titles and Explanation
(a)
Work in Process Inventory
(c)
Raw Materials Inventory
(To assign materials to jobs)
Work in Process Inventory
Factory Labor
(To assign labor to jobs)
Work in Process Inventory
Manufacturing Overhead
(To assign overhead to jobs)
No. Account Titles and Explanation
(a)
Prepare the three summary entries to record the assignment of costs to Work in Process from the data on the job cost
sheets. (Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Finished Goods Inventory
Work in Process Inventory
(To record completion of Jobs 310 and 312)
Accounts Receivable
$8,900
8,250
9,800
Sales Revenue
(To record sale of Job 312)
Debit
Cost of Goods Sold
During the current month, Standard Corporation completed Job 310 and Job 312. Job 310 cost $72,500 and Job 312 cost
$49,500. Job 312 was sold on account for $87,500.
Finished Goods Inventory
Journalize the entries for the completion of the two jobs and the sale of Job 312. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
5400
Debit
(To record cost of goods sold for Job 312)
6700
2100
Debit
Credit
5400
5900
800
Credit
2100
Credit
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