Answer:
Required 1.
J1
Raw Materials $210,000 (debit)
Accounts Payable $210,000 (credit)
J2
Work In Process : Direct Materials $151,200 (debit)
Work In Process : Indirect Materials $37,800 (debit)
Raw Materials $189,000 (credit)
J3
Work In Process : Direct Labor $50,000 (debit)
Work In Process : Indirect Labor $22,000 (debit)
Salaries and Wages Payable $72,000 (credit)
J4
Work In Process : Depreciation $106,000 (debit)
Accumulated Depreciation $106,000 (credit)
J5
Overheads $130,000 (credit)
Cash $130,000 (debit)
J6
Work In Process $686,700 (debit)
Overheads $686,700 (credit)
J7
Finished Goods $514,000 (debit)
Work In Process $514,000 (credit)
J8
Cost of Goods Sold $450,000 (debit)
Finished Goods $450,000 (credit)
J9
Accounts Receivables $612,000 (debit)
Sales Revenue $612,000 (credit)
Required 2.
Manufacturing Overhead T - Account
<u>Debit</u>
Indirect Materials $37,800
Indirect Labor $22,000
Depreciation $106,000
Other Overheads $130,000
Over-applied <em>(balancing figure)</em> $390,900
Totals $686,700
<u>Credit</u>
Work In Process $686,700
Totals $686,700
Work in Process T - Account
<u>Debit</u>
Opening Balance $36,000
Direct Materials $151,200
Direct Labor $50,000
Overheads $686,700
Totals $923,900
<u>Credit</u>
Finished Goods $450,000
Closing Balance <em>(Balancing figure)</em> $473,900
Totals $923,900
Explanation:
Manufacturing costs accumulate in the Work In Process Account.
Note that only applied overheads are included in Work In Process Account.
Cost of Finished Goods are removed from Work In Process Account and recognized in the Finished Goods Account
