Question

Nieland Industries has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process—Fabricating, $6,030; Work in Process—Finishing, $4,100; and Finished Goods, $5,600. During the month the following transactions occurred:
1. Purchased $40,000 of raw materials on account.
2. Incurred $65,000 of factory labor. Wages are unpaid.
3. Incurred $35,000 of manufacturing overhead; $30,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Fabricating, $10,000 and Finishing, $8,000.
5. Used factory labor for Finishing, $52,000 and Fabricating, $13,000.
6. Applied $30,000 of overhead based on machine hours used in each department. The Finishing Department used twice as many machine hours as did Fabricating.

Required:
Journalize the transactions for the month.

Answer 1

Answer:

Explanation:

1 Dr Raw Materials Inventory 40,000  

           Cr Accounts Payable  40,000

2     Dr Factory Labor 65,000  

            Cr Wages Payable  65,000

3 Dr Manufacturing Overhead 35,000  

       Dr Accounts Payable  5,000

             Cr Cash  30,000

4 Dr Work in Process—Fabricating 10,000  

       Dr Work in Process—Finishing 8,000  

           Dr  Raw Materials Inventory  18,000

5 Dr Work in Process—Fabricating 13,000  

       Dr Work in Process—Finishing 52,000  

           Cr Factory Labor  65,000

6 Dr Work in Process—Fabricating 10,000  

       Dr Work in Process—Finishing 20,000  

           Cr Manufacturing Overhead  30,000