Answer:
1. Dr Raw material 60100
Cr Account payable 60100 (Material purchased on account)
2. Dr work in process 50000
Cr Raw material 50000 (Direct material used)
3. Dr Over head 8800
Cr Raw material 8800 (indirect material used)
4. Dr work in process 75000
Cr Factory payroll 75000 (Direct labor used)
5. Dr. Overhead 36000
Cr factory payroll 36000 (Indirect labor used)
6. Dr Administrative expense 28000
Cr Account Payable 28000
7. Dr Account receivable 19000
Cr sales 19000
8. Dr Overhead 10400
Cr accumulated depreciation-factory plant and equipment 10400
9. Dr Overhead 1450
Property tax payable 1450( Property tax was payable)
10. Dr Overhead 6200
Cr prepaid insurance 6200 (Insurance expires)
11. Dr Overhead 7900
Cr Cash 7900 (Advertising made on cash)
12. Dr Overhead 800
Cr Accumulated depreciation-office equipment 800
(Depreciation of office equipment)
13. Dr Sales vehicles 1650
Cr Cash 1650 (purchase sales vehicle)
14. Dr Overhead 750
Cr Account payable 750 (legal fee incurred but not payable)
15. Dr work in process 72000
Cr Applied overhead 72000
( to record applied overhead= 18 * 4000 direct labor = 72000)
16. Dr finished goods 160000
Cr work in process 160000 ( to record cost of jobs completed)
Explanation:
Material Work in process Factory payroll
_Dr______Cr___ ___Dr______Cr_____ _Dr______Cr___
60100= 50000 50000= =75000
=8800 75000 =36000
Account Payable Overhead Cost of goods Manufactured
_Dr_____Cr___ _Dr______Cr___ _Dr______Cr___
=60100 8800 =
=28000 36000=
10400=
1450=
6200=
Cost of goods sold Finished goods Account receivable
_Dr______Cr___ _Dr______Cr___ _Dr______Cr___
19000=
Sales Accumulated deprecition-plant
_Dr______Cr___ _Dr______Cr___
=19000 =10400
Administrative Propert tax payable Prepaid insurance
Expense
_Dr______Cr___ _Dr______Cr___ _Dr______Cr___
28000= =1450 =6200