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Bogdan [553]
2 years ago
9

The Fabricating Department started the current month with a beginning Work in Process inventory of $10,500. During the month, it

was assigned the following costs: direct materials, $76,500; direct labor, $24,500; and factory overhead, 60% of direct labor cost. Also, inventory with a cost of $111,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:
Business
1 answer:
Bond [772]2 years ago
8 0

Answer:

Ending work in process = $14,700

Explanation:

The production process is divided into different stages and includes Raw materials (unprocessed input), Work in process (a combination of processed and unprocessed input), and Finished goods.

In this scenario the work in process started out as $10,500

There was an addition of direct materials

Work in process will increase to 10,500 + 76,500 = $87,000

Other additions are direct labour and factory overhead

Direct labour = $24,500

Factory overhead = 0.6 * 24,500 = $14,700

Inventory cost will be deducted

Ending work in process = 87,000 + 24,500 + 14,700 - 111,500 = $14,700

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Prepare general journal entries to record the following transactions. No explanations.Jan. 3 Paid office rent, $1,600.4 Bought a
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Jan. 3 Paid office rent, $1,600.

Dr Rent expense 1,600

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4 Bought a truck costing $50,000, making a down payment of $7,000.

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    Cr Accounts payable 43,000

6 Paid wages, $3,000.

Dr Wages expense 3,000

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7 Received $16,000 cash from customers for services performed.

Dr Cash 16,000

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10 Paid $4,100 owed on last month's bills.

Dr Accounts payable 4,100

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12 Billed credit customers, $5,300.

Dr Accounts receivable 5,300

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17 Received $1,800 from credit customers.

Dr Cash 1,800

    Cr Accounts receivable 1,800

19 Taylor Gordon, the owner, withdrew $1,700.

Dr Taylor Gordon, Drawing 1,700

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23 Paid $700 on amount owed for truck.

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4 0
3 years ago
Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 P
romanna [79]

Answer:

Details below

Explanation:

For issuance of an entry a single transaction is recorded that is work in process account is debited and materials inventory account is credited. In subsidiary ledgers job numbers are debited. For indirect Materials factory overhead is debited.

The  given data is as follows.

Requisition No.            Material         Job No.             Amount

103                                 Plastic              400                 $ 2,800

104                                 Steel                402                    24,000

105                                 Glue Indirect   1,620

106                                  Rubber             403                   3,200

107                                 Titanium           404                    31,600

The entry for materials requisitioned will be

A compound entry can be passed. In this the subsidiary ledger is not included.

Sr. No                  Particulars                                 Debit           Credit                                            

                   Work In Process                             61600

                Factory Overhead                               1620

               Materials Inventory                                                 63200

The one with a subsidiary ledger would look like this.

Sr. No                  Particulars                                 Debit           Credit

                                                      (Subsidiary)

1                     Work In Process                           61600

                                                  ( Job No 400)   2800

                                                   ( Job No 402)   24000

                                                    ( Job No 403)   3200

                                                    ( Job No 404)   31600

                Factory Overhead                               1620

               Materials Inventory                                                 63200

This is combined entry but separate entries can be passed as well .

Sr. No                  Particulars                                 Debit           Credit

                    Work In Process                           61600

               Materials Inventory                                                 61600

Sr. No                  Particulars                                 Debit           Credit

                  Factory Overhead                               1620

               Materials Inventory                                                   1620

Sr. No                  Particulars                                 Debit           Credit

                           (Subsidiary ledger)                

                            ( Job No 400)                          2800

                           ( Job No 402)                            24000

                           ( Job No 403)                             3200

                            ( Job No 404)                            31600

               Materials Inventory   Plastic                                      2800

               Materials Inventory   Steel                                        24000

                Materials Inventory    Titanium                                3200

                Materials Inventory     Rubber                                31600          

In each of the entries above materials inventory is credited.

3 0
3 years ago
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