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ID: A s. Smith and Hodges produce notions for the clothing industry. It uses fou

ID: 2541256 • Letter: I

Question

ID: A s. Smith and Hodges produce notions for the clothing industry. It uses four t lines s for its four Just-in-time operations and costing methods have recently been adopted. inventories work cells There were no beginning on February 1, Operating costs for February for work cell #2 are as follows. t materials purchased on account and used s 26,81 arts purchased on account and used Direct labor costs incurred verhead costs applied 19,32 17 59,4 119,63 117,78 t of goods completed during February ost of goods sold Using backflush costing, prepare the journal entries needed for the above data. General Journal Post. Ref Date Description Debit Credit

Explanation / Answer

                   PARTICULARS                               DEBIT                       CREDIT

                PURCHASES ACCOUNT    26815      

                 TO SUPPLIER ACCOUNT                                                  26815

                 Repair and maintenance (parts)              19320

                   To supplier account                                                           19320

                   Wages ( Direct labour)                       17000

                      TO cash account                                                          17000

No entry required for cost of goods sold , overhead appropriated etc .

Seperate cost sheet preparation time these have to be considered.