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3 years ago

10

Preparing Journal Entries for Process Costing SystemDuring its first month of operation, Portia Company purchased $90,000 of mat

erials on account and requisitioned $64,000 of materials for use in production. The company recorded $30,000 of direct labor cost and applied $20,000 of manufacturing overhead. Prepare Portia’s journal entries to record these events.

1 answer:

babunello [35]3 years ago

7 0

Answer:

a.

Date Account Title Debit Credit

XX-XX-XXXX Raw materials inventory $90,000

Accounts Payable $90,000

b.

Date Account Title Debit Credit

XX-XX-XXXX Work in Process Inventory $64,000

Raw materials inventory $64,000

c.

Date Account Title Debit Credit

XX-XX-XXXX Work in Process inventory $30,000

Wages Payable $30,000

d.

Date Account Title Debit Credit

XX-XX-XXXX Work in Process Inventory $20,000

Manufacturing overhead $20,000

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