Purchased raw materials on account for 200000 prepare the


Question - Shellenback Inc. has provided the following information for 20x5:

a. Purchased raw materials on account for $200,000.

b. Issued $185,000 in raw materials to production ($12,000 were not traceable to specific jobs).

c. Incurred $155,000 in direct labor costs (14,750 hours), $52,500 in supervision costs (paid in cash).

d. Incurred the following additional manufacturing overhead costs: factory lease $22,000 (paid in cash); depreciation on equipment $26,000; factory utilities $13,500 (paid in cash).

e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $55,000; sales commissions $58,000.

f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour.

g. Completed jobs costing a total of $457,000.

h. Sold jobs for $735,000 on account. The cost of the jobs was $441,000.

i. Closed the manufacturing overhead account balance.

Prepare the journal entries to record these transactions.

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Accounting Basics: Purchased raw materials on account for 200000 prepare the
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