Asked by Paula marques on Jul 20, 2024
Verified
From the following transactions, prepare the appropriate general journal entries for the month of April.
a. Raw materials costing $72,000 were issued from the storeroom.
b. Direct labor of $42,000 was charged to production.
c. Indirect labor costs of $17,000 were incurred.
d. Overhead was applied at the rate of 40% of direct labor dollars.
e. Completed products costing $38,000 were transferred to finished goods.
f. Products costing $32,000 were sold for $50,000 on account.
General Journal Entries
The records of financial transactions in the chronological order in which they occur, used as a preliminary step in building the company's financial statements.
Raw Materials
The basic materials that are used in the manufacturing process to create finished goods.
Direct Labor
The wages or costs associated with workers who are directly involved in the production of goods or services.
- Recognize the accounting records related to the manufacturing process, encompassing the transactions for materials, workforce, and indirect costs.
- Compute the applied overhead utilizing different criteria including direct labor hours, machine hours, and direct labor dollars.
- Identify the methods used for treating manufacturing overhead costs and distinguish between actual and applied overhead.
Verified Answer
Learning Objectives
- Recognize the accounting records related to the manufacturing process, encompassing the transactions for materials, workforce, and indirect costs.
- Compute the applied overhead utilizing different criteria including direct labor hours, machine hours, and direct labor dollars.
- Identify the methods used for treating manufacturing overhead costs and distinguish between actual and applied overhead.
Related questions
In Entries to Record the Movement of Material, Labor, and ...
Which of the Following Is the Correct Flow of Manufacturing ...
Hultquist Corporation Has Two Manufacturing Departments--Forming and Customizing ...
Dancel Corporation Has Two Production Departments, Milling and Finishing ...
Bulla Corporation Has Two Production Departments, Machining and Customizing ...