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3 years ago

Prepare journal entries to record the following production activities.

Business

1 answer:

blagie [28]3 years ago

5 0

Answer:

1.Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

Explanation:

Preparation to record Journal entry

1. Since the amount of $75,000 was been Incurred of the direct labour production this means we have to record the transaction as :

Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Since the amount of $20,000 was Incurred of indirect labor in production this means we have to record the transaction as:

Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Since factory payroll was paid the transaction will be recorded as :

Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

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Answer:

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3 years ago

A produce distributor uses 774 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an ann

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Answer:

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Explanation:

For computing the saving amount, first need to calculate the economic order quantity, total cost etc

The economic order quantity is

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where,

Annual demand is

= 774 packaging crates × 12 months

= 9,932 crates

And, the carrying cost is

= $12 × 34%

= $4.08

$= \sqrt{\frac{2\times \text{9,288}\times \text{\$29}}{\text{\$4.08}}}$

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Now the total cost is

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= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit

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= $1,482.54

Now the total cost in case of 774 packing crates is

= Annual ordering cost + Annual carrying cost

= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit

= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08

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Answer:

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Giving the following information:

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$640 salaries for factory maintenance

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Total manufactured cost= direct materials + direct labor + allocated manufacturing overhead

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