(a)
Concept introduction:
To explain:
The following
a. | Raw Materials Inventory | 52, 000 | |
Accounts Payable | 52, 000 |
Answer to Problem 26E
Explanation of Solution
Raw material inventory is the aggregate cost related to the commodities which is not utilized in the products yet.
(b)
Concept introduction:
Process costing system is the accumulation of total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
b. | Work-in Process Inventory | 42, 000 | |
Raw Materials Inventory | 42, 000 |
Answer to Problem 26E
Account is debited and credited with the amount of
Explanation of Solution
Work in progress is the aggregate cost which is involved with the commodities which is partially into the production process, but it is not the finished products yet. Work in progress is debited by
(c)
Concept introduction:
Process costing system is the accumulation total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
c. | Work-in Process Inventory | 32, 000 | |
Factory Payroll Payable | 32, 000 |
Answer to Problem 26E
Explanation of Solution
Work in progress has a credit balance of
(d)
Concept introduction:
Process costing system is the accumulation total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
d. | Factory |
6, 000 | |
Factory Payroll Payable | 6, 000 |
Answer to Problem 26E
The factory overheads of
Explanation of Solution
Factory overheads are the expenses other than direct material and labour. Hence, the factory overheads are debited and the amount is credited to factory payroll, which means the expenses for indirect labour is incurred and to be paid with the amount of
(e)
Concept introduction:
Process costing system is the accumulation of total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
e. | c | 12, 000 | |
Cash | 12, 000 |
Answer to Problem 26E
Explanation of Solution
Factory payable is the amount which is paid to the employees at a specified date. Factory payable is debited, and cash account is credited with
(f)
Concept introduction:
Process costing system is the accumulation of total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
f. | Factory Overhead | 10, 000 | |
Raw Materials Inventory | 10, 000 |
Answer to Problem 26E
The factory overheads of
Explanation of Solution
Factory overheads are the expenses other than direct material and labour. Hence, the factory overheads are debited and the amount raw material inventory is credited, which means the expenses for indirect material is incurred with the amount of
(g)
Concept introduction:
Process costing system is the accumulation of total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
g. | Factory Payroll Payable | 38, 000 | |
Cash | 38, 000 |
Answer to Problem 26E
Explanation of Solution
Factory payable is the amount which is paid to the employees at a specified date. Factory payroll payable is debited, and cash account is credited with
(h)
Concept introduction:
Process costing system is the accumulation of total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
h. | Work-in process Inventory | 33, 600 | |
Factory overhead | 33, 600 |
Answer to Problem 26E
Work in process is debited with
Explanation of Solution
Work in process is the stage in which the finished goods are half converted and still in process. The amount which is
(i)
Concept introduction:
Process costing system is the accumulation of total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
i. | Finished Goods Inventory | 88, 000 | |
Work-in process Inventory | 88, 000 |
Answer to Problem 26E
The account of finished goods is debited and the account of work in process is credited with the amount of
Explanation of Solution
The finished account is the one in which the goods which are completed to sell to the buyer are transferred. So, the goods which are completed in processing is transferred from WIP to finished goods account with an amount of
(j)
Concept introduction:
Process costing system is the accumulation of the total cost of producing large number of similar units. Cost is accumulated with the large batch production at aggregate level.
To explain:
The following journal entry of process costing system.
j. | 250, 000 | ||
Sales | 250, 000 | ||
Cost of Goods Sold | 100, 000 | ||
Finished Goods Inventory | 100, 000 |
Answer to Problem 26E
The receivables are debited, and sales account is credited with the amount of
Explanation of Solution
Receivables are the amount which is yet to be received from debtors for which goods have already been sold. Sales account has a credit balance of
Finished products are the part of inventory which is produced but not sold in the market. Cost of goods sold has the debit balance of
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Chapter 3 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
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