FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Topic Video
Question
The following events occurred over the course of a year at Coronado Corp., which uses a job order costing system:
1. Direct materials purchases totaled $586,000. Coronado Corp tracks its direct materials separately from its indirect materials.
Purchases were made on account.
2. $133,000 of indirect materials were used in production. Coronado uses a separate Supplies Inventory account for indirect
materials.
3. $556,000 of direct materials were used in production.
4. The direct labor payroll was $791,000 (credit Wages Payable).
5. Other manufacturing overhead costs incurred during the year totaled $684,000.
6. Coronado applies overhead based on a predetermined overhead rate of $24 per machine hour. The company used 48,000
machine hours during the year.
7. During the year, Coronado transferred goods costing $2,430,000 into the Finished Goods Inventory account.
8. Coronado sold products with a manufacturing cost of $2,398,000 to customers during the year.
expand button
Transcribed Image Text:The following events occurred over the course of a year at Coronado Corp., which uses a job order costing system: 1. Direct materials purchases totaled $586,000. Coronado Corp tracks its direct materials separately from its indirect materials. Purchases were made on account. 2. $133,000 of indirect materials were used in production. Coronado uses a separate Supplies Inventory account for indirect materials. 3. $556,000 of direct materials were used in production. 4. The direct labor payroll was $791,000 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $684,000. 6. Coronado applies overhead based on a predetermined overhead rate of $24 per machine hour. The company used 48,000 machine hours during the year. 7. During the year, Coronado transferred goods costing $2,430,000 into the Finished Goods Inventory account. 8. Coronado sold products with a manufacturing cost of $2,398,000 to customers during the year.
Prepare journal entries to record these events. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually Post entries in order presented in the problem)
No. Account Titles and Explanation
1.
2
3.
5.
(To record purchase of direct materials)
7.
(To record use of indirect materials in production)
(To record use of direct materials in production)
(To record direct labor payroll)
Show Transcribed Text
(To record direct labor payroll)
(To record actual manufacturing overhead)
(To record applied manufacturing overhead)
(To record transfer of completed goods to Finished Goods
Inventory)
(To record cost of goods sold for the period)
Show Transcribed Text
Debit
00 00 00 00
000 00
Credit
00 00 00 00
expand button
Transcribed Image Text:Prepare journal entries to record these events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Post entries in order presented in the problem) No. Account Titles and Explanation 1. 2 3. 5. (To record purchase of direct materials) 7. (To record use of indirect materials in production) (To record use of direct materials in production) (To record direct labor payroll) Show Transcribed Text (To record direct labor payroll) (To record actual manufacturing overhead) (To record applied manufacturing overhead) (To record transfer of completed goods to Finished Goods Inventory) (To record cost of goods sold for the period) Show Transcribed Text Debit 00 00 00 00 000 00 Credit 00 00 00 00
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education