Answer:
1. Dr Raw materials $80,000
Cr Account payable $80,000
2. Dr Work-in-Process $62,000
Dr Manufacturing overhead $9,000
Cr Raw materials $71,000
3. Dr Work-in-Process $101,000
Dr Manufacturing overhead $11,000
Cr Cash $112,000
4. Dr Manufacturing overhead $175,000
Cr Accumulated depreciation $175,000
Explanation:
Preparation of Journal entries
1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :
Dr Raw materials $80,000
Cr Account payable $80,000
(Raw materials purchased on account)
2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:
Dr Work-in-Process $62,000
Dr Manufacturing overhead $9,000
(71,000-62,000)
Cr Raw materials $71,000
(raw material charged to production)
3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :
Dr Work-in-Process $101,000
Dr Manufacturing overhead $11,000
(112,000-101,000)
Cr Cash $112,000
(Wages charged to production)
4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :
Dr Manufacturing overhead $175,000
Cr Accumulated depreciation $175,000
(Depreciation charged)
is the <span>present value of an annuity factor for n years at r%.