Answered: 1. What is the Journal Entry for:…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...

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1. What is the Journal Entry for:
August 4,20X5 purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4000 on account.

A. Raw Materials Inventory 4,000

Cash 4000

B. Accounts Payable 4000

Raw Materials Inventory 4000

C. Raw Materials Inventory 4000

Accounts Payable. 4000

D. Cash 4000

Raw Materials Inventory 4000

2. How much do you need to DEBIT the work-in-Process account for the following transaction?
Aug 8,20X5 - Transferred 60% of the raw materials purchased on August 4 into production:

Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete
the entries, determine the amount to include in raw materials, work in process, and finished goods.
Aug. 4, 20X5
Aug. 8, 20X5
Aug. 8, 20X5
Aug. 9, 20X5
Aug. 10, 20X5
Purchased fabric and aluminum to be used in the manufacturing process. The purchase price
was $4,000, on account.
Transferred 60% of the raw materials purchased on August 4 into production.
Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor
cost.
Transferred completed awnings with total assigned costs of $4,400 to finished goods.
Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash.

GENERAL JOURNAL
Date
8-4-X5
8-8-X5
8-9-X5
8-10-X5
Raw Materials Inventory
Accounts Payable
To record purchase of raw materials
Accounts
Work in Process
Raw Materials Inventory
Salaries Payable
Factory Overhead
To transfer raw materials to production, record
direct labor costs on job, and apply overhead at the
predetermined rate
Finished Goods Inventory
Work in Process
8-10-X5 Cash
Sales
To transfer completed units to finished goods
inventory
To record sale of finished awning for $4,000
Cost of Goods Sold
Finished Goods Inventory
To transfer finished goods to cost of goods sold
Debit
4,000
6,600
4,400
4,000
2,200
Page 1
Credit
4,000
2,400
3,000
1,200
4,400
4,000
2,200

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