Answer:
raw materials 210,000 debit
cash 210,000 credit
-- to record purchase of materials--
factory overhead 80,000 debit
WIP inventory 265,000 debit
cash 345,000 credit
-- to record payment and allocationf of wages --
factory overhead 15,000 debit
WIP inventory 186,000 debit
inventory 201,000 credit
--to record use and allocationf of materials--
factory overhead 120,000 debit
accoutns payable 120,000 credit
-- to record other overhead expenses--
WIP 185,500 debit
factory overhead 185,500 credit
--to record applied overhead--
finished goods 625,400 debit
WIP 625,400 credit
--to record trasnferred-out goods--
cash 1,400,000 debit
sales revenue 1,400,000 credit
--to record sales revenue--
COGS 652,800 debit
inventory 652,800 credit
--to record COGS for the period--
COGS 14,500 debit
factory overhead 14,500 credit
--to record underapplied overhead--
Explanation:
for the use of materials:
Beginning Raw Materials 43,000
Purchases 210,000
Ending Raw materials (52,000)
Used: 201,000
Indirect materials (15,000)
direct materials: 186,000
applied overhead
265,000 direct labor x 70% = 185,500
transferred out:
Beginning WIP 10,200
cost added <u> 636,500 </u>
total cost 646,700
ending WIP (21,300)
COGM 625,400
COGS
63,000 + 625,400 - 35,600 =652.800
adjusmtent for overhead:
applied 185,500
actual overhead: 200,000
underapplied for 14,500
