Answer:
raw materials 20000 debit
accounts payable 20000
WIP 8000 debit
factory overhead 1000 debit
raw materials 9000 credit
WIP 84000 debit
factory overhead 24000 debit
wages payables 108000 credit
factory overhead 10100 debit
cash 10100 credit
WIP 49000 debit
factory overhead 49000 credit
Finished Goods 18000 debit
WIP inventory 18000 credit
COGS 15000 debit
Finished Goods 15000 credit
Explanation:
The indirect materials and labor will be considered actual factory overhead thus debited into that account
same procedures applies to the repair and utilities paid in cash we have to posted into factory overehad
from the cost sheet we determiante 7,000 labor hours we apply the $7 overhead rate per our to get the amount of applied overhead
The finished goods will increase while the WIP inventory decrease by the ammount transferred out
The COGS is an expense which decreases our finished goods inventory as we sale them and are no longer in our possesion.
