prepare journal entries
- post the entires to T accounts with the beginning balances, with ending balances for: Raw materials, work in progress, finished goods, manufacturing overhead, and cost of goods sold.
On Jan 1. The company's inventory balances were as follows:
- Raw materials: $25,000
- Work in Progress: $10,000
- Finished Goods: $60,000
The company applies overhead costs based on direlect labor hours. For the current year, the company has made the following estimates:
- Estimated Manufacturing OVerhead Cost: 430,000
- Estimated Direct Labor Hours: 60,000
Transactions during the year:.
1.Raw materials purchased on account: 470,000
2.Raw materials were requisitoned for the use in production:
- direct materials: 395,000
- Indirect Materials: 35,000
3.The following costs were incurred for employee services:
- direct labor: $65000
- indirect labor: 100,000
- sales commission: 30000
- Admin Salaries: 130000
4.Sales travel costs: 15,000
5.Utility costs in the factory: 47000
6.Advertising costs: 115000
7.Depreciation was recorded for the year: 450,000
- factory equipment: 70%
- admin equipment: 30%
8. Insurance expired during the year: 20,000
- factory operations: 60%
- admin activities: 40%
9.manufacturing overhead was applied to production:
actual direct labor hours: 67,000
10. cost of goods completed during the year: 780,000
11. total sales on account: 1,150,000
12. cost of goods sold: 725,000