The company records journal entry for each transaction, then transfers it to the ledger accounts. Raw materials are used and converted to ‘work-in progress’ goods and later into finished goods, after which they are ready for sale. Company also accounts for direct and indirect costs that have been used in the manufacturing of goods. To discuss: Preparation of the journal entry.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 25E

To determine

The company records journal entry for each transaction, then transfers it to the ledger accounts. Raw materials are used and converted to ‘work-in progress’ goods and later into finished goods, after which they are ready for sale. Company also accounts for direct and indirect costs that have been used in the manufacturing of goods.

To discuss:

Preparation of the journal entry.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Analyzing cost data, recording completion and sales of jobs Sutherland Manufacturing makes carrying cases for portable electronic devices. It’s costing records yield the following information: Requirements Which type of costing system is Sutherland using? What piece of data did you base your answer on? Use the dates in the table to identify the status of each job at October 31 and November 30. Compute Sutherland’s account balances at October 31 for Work-in-Process Inventory, Finished Goods Inventory, and Lost of Goods Sold. Compute, by Job, account balances at November 30 for Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.

Recording manufacturing costs in a JIT costing system Gateway produces electronic calculators. Suppose Gateway’s Standard cost per calculator is $25 for direct materials and $68 for conversion costs. The following data apply to August activities: Requirements Prepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account. The beginning balance of Finished Goods Inventory was $1,300. Use a T-account to find the ending balance of Finished Goods Inventory.

ournal Entries and Simple Cost Sheet Based on the following information. you are réquired to preparc the following Journal entries b T-account for work in process c Simple cost sheets d. Proof of work in process inventory. end The Reuben Appliances Corp. started its operations in 200B It uses the job order costing method and has adopted the voucher system to effectively control the flowof resources. inventories and payables. The transactions for the first quarter of the year are as follows: ) Materials purchases on account. P 50.000 2) Materials issued: Job Order No. B-001 B-002. P 7,500 13.000 B-003 6.250 3) Indirect materials issued. P 5.250 4) Payroli charges include indirect labor of P7.800. Dircct labor costs are as follows Job Order No. B-001. P 5.300 8.000 B-002. .... B-003. 4.750 5) Factory overhead is charged to production at P3 per machine hour. Machine hours utilized are as follows: Job Order No. B-901..... B-002... 1,200 machine hours 2.050 machi.e hours 1.400 machine hours…