Answer:
1.
Raw Materials $53,000 (debit)
Account Payable $53,000 (credit)
2.
Work In Process : Direct Materials $33,100 (debit)
Work In Process : Indirect Materials $ 8,700 (debit)
Raw Materials $41,800 (credit)
3.
Salaries Expenses $60,500 (debit)
Salaries and Wages Payable $60,500 (credit)
4.
Work In Process : Direct Labor $54,800 (debit)
Work In Process : Indirect Labor $5,700 (debit)
Salaries Expense $60,500 (credit)
5.
Overheads Expenses $84,800 (debit)
Trade Payable $84,800 (credit)
6.
Depreciation - Office Building $9,000 (debit)
Accumulated Depreciation- Office Building $9,000 (credit)
7.
Work In Process $87,680 (debit)
Overheads $87,680 (credit)
8.
Finished Goods $94,200 (debit)
Work In Process $94,200 (credit)
9.
J1
Cost of Goods Sold $78,200 (debit)
Finished Goods $78,200 (credit)
J2
Trade Receivable $109,000 (debit)
Revenue $109,000 (credit)
Explanation:
The Manufacturing Costs accumulate in the Work In Process Account during manufacture.
The Costs is de-recognized from Work In Process Account to Finished Goods Account on transfer to Finished Goods.
The Costs are then de-recognized from Finished Goods to Cost of Sales on Sale to Customers.
Calculation of Overhead Applied :
Overhead = $54,800 × 160% = $87,680.
