Prepare the necessary journal entries from the following information for Caudill
ID: 2381493 • Letter: P
Question
Prepare the necessary journal entries from the following information for Caudill Company.
a. Purchased materials on account, $56,700.
b. Requisitioned materials for production as follows: direct materials - 80 percent of purchases, indirect materials - 15 percent of purchases
c. Direct labor for production is $33,100, indirect labor is $12,500.
d. Overhead incurred (not including materials or overhead): $52,900.
e. Overhead is applied to production based on direct labor cost at the rate of 220 percent.
f. Goods costing $97,600 were completed during the period.
g. Goods costing $51,320 were sold on account for $77,600.
h. Close the overhead control account to Cost of Goods Sold.
Explanation / Answer
a) Raw Materials Inv 56700
Account Payable 56700
b) WIP Inv 45360
Raw Mater Inv-direct 45360
WIP Inv 8505
Raw Mater Inv -indirect 8505
c) WIP INV 33,100
Wages Payab 33,100
WIP INV 12500
Wages Patable 12500
d) MOH 66,900
Cash 66900
e) Wip Inv(33100*1.1) 36410
MOH 36410
WIP INV 30,000
MOH 30,000
g) Finished Goods Inv 97600
WIP INV 97600
h) Account Receiv 77600
Sales Revenue 77600
Cost of Goods Sold 51320
Finished Goods Inv 51320
i) MOH 490
Cost of Goods Sold 490
To assign(dispose) overapplied overhead toCGS(66900-36410-30000)=490
Redused CGS