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Please enter the following jounal entries. The T-Bone Company has three departme

ID: 2427190 • Letter: P

Question

Please enter the following jounal entries.

The T-Bone Company has three departments: Design, Sewing, and Embellishing. Each department uses a different overhead cost allocation base. The budgeted allocation rate for each department is: Design - $.25 per direct labor dollar, Sewing - $2.65 per machine hour, and Embellishing - $1.10 per direct material dollar.

12/05   Cash was received from our customers on their accounts in the amount of $27,400.

12/10   Wages from the previous month were paid. (Current balance in Wages Payable is                          from last month.)

12/11   The utilities expense for the manufacturing process of $3,250 was paid in cash.

12/14   Purchased materials - $13,582 (All material purchases are made on account.)

12/23   Paid Accounts Payable from the previous month.

12/29 During December the following work was done: (Hint: You can record this all in one journal entry. Post details to each account from the total entry and be sure the WIP balance equals the total of all the subsidiary ledger balances)

DESIGN SEWING EMBELISHMENT Job DM DL OH DM DL MACHINE HOURS DM DL OH 10-3 $1400 $2000 $1340 11-1 $1,050 2,450 240 540 840 11-2 $4,000 $4,800 240 2,040 $1730 12-1 $312 $1500 $375 $3,840 $3,320 360 12-2 $240 $2,132 $533

Explanation / Answer

Answer:

12/05       Cash.......................................................Dr. $ 27,400

                         Sales.........................................................$ 27,400

12/10      Wages .................................................Dr.

                   Outstanding Wages...........................................

               Outstanding Wages................................Dr.

                         Cash.....................................................

( Amount not provided)

12/11 Utility Expenses........................................................Dr.$ 3,250

                           Cash..................................................................Dr $ 3,250

12/14   Purchase.................................................................Dr. $ 13,582

                            Cash................................................................ $ 13,582