required information d. indirect materials used and assigned to factory overhead. e. indirect labor used…

required information d. indirect materials used and assigned to factory overhead. e. indirect labor used (and paid in cash) and assigned to factory overhead. f. overhead costs applied to work in process inventory. g. actual other overhead costs incurred (factory rent and utilities are paid in cash.) h. transfer of jobs 306 and 307 to finished goods inventory. i. cost of goods sold for job 306. j. revenue from the sale of job 306 received in cash. k. close underapplied or overapplied overhead to the cost of goods sold account 3. prepare journal entries for the month of april to record the above transactions. answer is not complete. no transaction general journal debit credit 1 a. raw materials inventory 510,000 accounts payable 510,000 2 b. work in process inventory 485,000 raw materials inventory 485,000

required information d. indirect materials used and assigned to factory overhead. e. indirect labor used (and paid in cash) and assigned to factory overhead. f. overhead costs applied to work in process inventory. g. actual other overhead costs incurred (factory rent and utilities are paid in cash.) h. transfer of jobs 306 and 307 to finished goods inventory. i. cost of goods sold for job 306. j. revenue from the sale of job 306 received in cash. k. close underapplied or overapplied overhead to the cost of goods sold account 3. prepare journal entries for the month of april to record the above transactions. answer is not complete. no transaction general journal debit credit 1 a. raw materials inventory 510,000 accounts payable 510,000 2 b. work in process inventory 485,000 raw materials inventory 485,000

Answer

Answer:

No Transaction General Journal Debit Credit
3 d. Factory Overhead [Amount of indirect materials] Raw Materials Inventory
3 e. Factory Overhead [Amount of indirect - labor] Cash
3 f. Work in Process Inventory [Amount of overhead applied] Factory Overhead
3 g. Factory Overhead [Amount of actual other overhead] Cash
3 h. Finished Goods Inventory [Cost of Jobs 306 and 307] Work in Process Inventory
3 i. Cost of Goods Sold [Cost of Job 306] Finished Goods Inventory
3 j. Cash [Revenue from Job 306] Sales Revenue
3 k. Cost of Goods Sold (if under - applied) or Factory Overhead (if over - applied) [Under/Over - applied amount] Factory Overhead (if under - applied) or Cost of Goods Sold (if over - applied)

Explanation:

Step1: Record indirect materials

Debit Factory Overhead as it is an overhead cost, credit Raw Materials Inventory for the materials used.

Step2: Record indirect labor

Debit Factory Overhead for the labor cost, credit Cash as it is paid in cash.

Step3: Apply overhead to WIP

Debit Work in Process Inventory to add overhead cost, credit Factory Overhead.

Step4: Record other actual overhead

Debit Factory Overhead for the actual costs, credit Cash for the cash payments.

Step5: Transfer jobs to finished goods

Debit Finished Goods Inventory, credit Work in Process Inventory for the cost of completed jobs.

Step6: Record cost of goods sold

Debit Cost of Goods Sold, credit Finished Goods Inventory for the cost of the sold job.

Step7: Record revenue

Debit Cash for the received cash, credit Sales Revenue for the revenue from the sale.

Step8: Close under/over - applied overhead

Adjust the Cost of Goods Sold or Factory Overhead account depending on whether overhead is under - applied or over - applied.