I only need the journal entry for H. Almeda Products, Inc., uses a job-order cos
ID: 2425242 • Letter: I
Question
I only need the journal entry for H.
Almeda Products, Inc., uses a job-order costing system. The company's inventory balances on April 1, the start of its fiscal year, were as follows:
Raw materials $15,200
Work in process $10,100
Finished goods $31,100
During the year, the following transactions were completed:
a. Raw materials were purchased on account, $200,000.
b. Raw materials were issued from the storeroom for use in production, $189,400 (80% direct and 20% indirect).
c. Employee salaries and wages were accrued as follows: direct labor, $70,000; indirect labor, $27,000; and selling and administrative salaries, $80,000.
d. Utility costs were incurred in the factory, $43,000.
e. Advertising costs were incurred, $50,000.
f. Prepaid insurance expired during the year, $9,000 (90% related to factory operations, and 10% related to selling and administrative activities).
g. Depreciation was recorded, $61,000 (85% related to factory assets, and 15% related to selling and administrative assets).
h. Manufacturing overhead was applied to jobs at the rate of 175% of direct labor cost.
i. Goods that cost $323,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
j. Sales for the year totaled $700,400 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $338,000.
Explanation / Answer
h) Work in Process inventory($70000*175%) Dr $122500
Manufacturing Overhead Cr $122500