Answer:
The Journal entries are as follows:
(i)
Work in process inventory[9,500 - 800] A/c Dr. $8,700
Manufacturing overhead A/c Dr. $800
To Raw materials inventory $9,500
(To record the issuance of raw materials to production)
(ii)
Work in process inventory[15,700 - 2,000] A/c Dr. $13,700
Manufacturing overhead A/c Dr. $2,000
To wages payable $15,700
(To record the Oak Creek Furniture Factory’s payroll costs)
(iii)
Work in process inventory [13,700 × 55%] A/c Dr. $7,535
To Manufacturing overhead A/c $7,535
(To record the application of manufacturing overhead to production)
