Answer: See explanation
Explanation:
The journal entry will be analysed below:
a. Dr Raw materials inventory $100,000
Cr Accounts payable $100,000
b. Dr Work in process inventory $42000
Cr Raw materials inventory $42000
Dr Factory overhead $15000
Cr Raw materials inventory $15000.
c. Dr Work in process inventory $36000
Dr Factory overhead $14000
Cr Cash $50,000
d. Dr Factory overhead $8250
Cr Cash $8250
e. Dr Work in process inventory = $36000 × 120% = $43200
Cr Factory overhead $43200
f. Dr Finished goods inventory $68175
Cr Work in process inventory $68175
g. Dr Cost of goods sold $68175
Cr Finished goods inventory $68175
Dr Accounts receivable $97000
Cr Sales $97000
