As per my research the complete question is
<em>"Selected information from Skylar Studios shows the following:
</em>
<em>Raw materials purchased $5,000, Direct materials $1,500, Direct labor $11,000, Factory depreciation $2,000, Total manufacturing overhead incurred $15,000, Machine hours per month 28,000, Unit cost for material $2, Unit cost of conversion $8, Number units transferred 15,000.
Prepare journal entries to record the following:
</em>
<em>raw material purchased
</em>
<em>direct labor incurred
</em>
<em>depreciation expense (hint: this is part of manufacturing overhead)
</em>
<em>raw materials used
</em>
<em>overhead applied on the basis of $0.50 per machine hour
</em>
<em>the transfer from department 1 to department 2"</em>
Answer:
The journal entries to record the transactions given in problem are given below.
raw material purchased
Debit RM inventory $5000
Credit payable/cash $5000
direct labor incurred
Debit WIP Dep 1 $11000
Credit Payroll Account $11000
depreciation expense (hint: this is part of manufacturing overhead)
Debit Factory Overhead Control Account $2000
Credit Accumlated Depreciation $2000
raw materials used
Debit WIP Dep 1 $1500
Credit RM inventory $1500
overhead applied on the basis of $0.50 per machine hour
Debit WIP Dep 1 $14000
Credit Applied Factor overhead $14000
(28000* 0.5)
the transfer from department 1 to department 2
Debit WIP Dep 2 $150000
Credit WIP Dep 1 $150000
(15000* 10)
