The selected data that follow relate to the C&R Ice Company. Direct material pur
ID: 2455098 • Letter: T
Question
The selected data that follow relate to the C&R Ice Company.
Direct material purchased on account $150,000
Direct material used 69,000
Direct Labor 160,000
Manufacturing overhead incurred 90,000
Manufacturing overhead applied 80,000
During the year, products costing $300,000 were completed, and products costing $306,000 were sold on account for $445,000.
Required:
Prepare journal entries to record the preceding transactions and events.
Explanation / Answer
Answer:
Raw material inventory A/C Dr. $150000
To Accounts payable A/C $150000
Work in process inventory A/C Dr. $69000
To Raw material inventory A/C $69000
Work in process inventory A/C Dr. $160000
To Wages and salaries payable A/C $160000
Manufacturing overhead A/C Dr. $90000
To Accounts payable/Cash a/C $90000
Work in process inventory A/C Dr. $80000
To manufacturing overhead A/C $80000
Finished goods inventory A/C Dr. $300000
To Work in process inventory A/C $300000
Cost of goods sold A/C Dr. $306000
To finished goods inventory A/C $306000
Accounts receivable A/C Dr. $445000
To sales A/C $445000