Answer and Explanation:
The Journal entries are prepared below:-
a. Raw materials inventory Dr, $98,000
To Accounts payable $98,000
(Being raw material is purchased on the account is recorded)
b. Work in process inventory Dr, 41,500
To Raw materials inventory $41,500
(Being direct material used is recorded)
Factory overhead Dr, 18,800
To Raw materials inventory $18,800
(Being indirect material used is recorded)
c. Work in process inventory Dr, $45,000
Factory overhead Dr, $33,000
To Cash $78,000
(Being cash paid is recorded)
d. Factory overhead Dr, $8,125
To Cash $8,125
(Being cash paid is recorded)
e. Work in process inventory Dr, $56,250 (45,000 × 125%
)
To Factory overhead $56,250
(Being overhead is recorded)
f. Finished goods inventory Dr, $63,000
To Work in process inventory $63,000
(Being transferred cost is recorded)
g, Cost of goods sold Dr, $63,000
To Finished goods inventory $63,000
(Being cost of goods sold is recorded)
Accounts receivable Dr, $90,000
To Sales $90,000
(Being sales value is recorded)
