Problem 3 15
Problem 3 15
journal entries
No. General journal Debit Credit
a raw meterial inventory 200,000
account payable 200,000
b work in process 185,000
raw material inventory 185,000
c manufacturing overhead (70,000x90%) 63,000
utility expenses (70,000-63,000) 7,000
account payable 70,000
d work in process 230,000
manufacturing overhead 90,000
selling and administrative expense 110,000
wages payable 430,000
e manufacturing overhead 54,000
account payable 54,000
f advertising expenses 136,000
account payable 136,000
g manufacturing overhead (95,000x80%) 76,000
depreciation expenses (95,000-76,000) 19,000
accumulated depreciation 95,000
h manufacturing overhead (120,000x85%) 102,000
rental expenses (120,000-102,000) 18,000
account payable 120,000
i work in process 390,000 NOTE: i
manufacturing overhead 390,000
j finished goods 770,000
work in process 770,000
k account receivable 1,200,000
sales revenue 1,200,000
cost of goods sold 800,000
finished goods 800,000
POHR= estimated overhead/estimated direct labor hours = 360,000/900=400 per DLH
Applied overhead=actual direct labor hours x POHR = 975x400=390,000
2.T-account
Accounts Receivable Sales Revenue
(k) $1,200,000 (k)
Work In Process
Beg Bal 21,000 Manufacturing Overhead
(b) 185,000 (j) 770,000 Beg Bal
(d) 230,000 (c) 63,000 (i)
(i) 390,000 (d) 90,000
( e) 54,000
End Bal 56,000 (g) 76,000
(h) 102,000
End Bal
5,000
ing expense
es Expense
es Expense
Wages Payable
110,000
110,000
Expense
s manufactured 4.1 prepare journal entry to close any balance in the M.O acc t
No. General journal Debit
ured 1 manufacturing overhead 5,000
Cost of goods sold
290,000
115,000