Answer:
Sheridan Corporation
Journal Entries:
1. Debit Raw Materials Inventory $46,600
Credit Accounts Payable $46,600
To record purchase of raw materials on account.
2. Debit Direct Raw Materials $33,800
Debit Indirect Raw materials $7,000
Credit Inventory $40,800
To record the requisitioning of raw materials to the factor.
4. Debit Direct labor $55,700
Debit Indirect labor $4,600
Credit Cash Account $60,300
To record labor costs incurred.
5. Debit Manufacturing Overhead $83,700
Credit Cash account $83,700
To record manufacturing overhead cost.
6. Debit Depreciation $8,900
Credit Accumulated Depreciation $8,99
To record the depreciation expense for the period.
7. Debit Manufacturing Overhead $5,420
Underapplied Manufacturing Overhead $5,420
To record underapplied manufacturing overhead.
8. Debit Finished Goods Inventory $93,500
Credit Cost of Production $93,500
To transfer completed goods.
9. Debit Cost of Goods Sold $85,100
Credit Finished Goods Inventory $85,100
To record the cost of finished goods.
Explanation:
Journal entries are made to record business transactions. They help classified transactions according to their whether they are to be debited or credit.
