Journal entry
1. Dr Material 80000
Cr Accounts payable 80000
(Purchase material on account)
2. Dr Work in process 4000
Cr Material 4000
(issue material)
3. Dr Material 56000
Cr Accounts payable 56000
( Purchase material on account)
4. Dr Accounts payable 80000
Cr Cash 80000
(Paid cash of material purchase)
5. Dr Work in process 68000
Cr Material 68000
( Issued material to production)
6. Dr Work in process 100000
Cr Wages payable 100000
(Direct labor incurred)
7. Dr Factory overhead 106000
Cr Cash 106000
( Paid cash on account of factory overhead)
8. Dr Work in process (100000*125%) 125000
Cr Applied factory overhead 125000
( To record applied factory overhead)
9. Dr Factory overhead 50000
Cr Accumulated depreciation 50000
( To record depreciation on plant and equipment)
T-account
Cash Material
Dr___________Cr__ __ DR ___________CR
148200 ---
---80000 80000 ---- 4000
---106000 56000 ---
-- 68000
Work in process Accounts payable
Dr____________Cr___ ___ DR ___________Cr
33000 ---
4000--- 80000 -- 80000
68000-- -- 56000
100000---
125000 ---
Wages payable Factory overhead
Dr ____________Cr__ __ Dr _____________Cr
--- 100000 106000 --
50000 --
Applied factory overhead Accumulated depreciation
Dr_____________Cr__ _ Dr ___________Cr_
--- 1250000 --- 50000
Finished goods Cost of goods sold
Dr_____________Cr__ _ Dr ___________Cr_
166000 --- --- 263400
--- 143200
Material end =?
Material (end) = 148200 +80000+56000-4000-68000=
Work in process (end) = ?
work in process = 148200+166000-143200 =171000