Prepare the necessary journal entries for the Goodman Company for the month of January in order from 1 to 9. Goodman uses our Standard Manufacturing Journal Entry System, and the raw materials beginning inventory on January 1 was zero. a. Raw materials purchases on account for January were $23,000. b.Direct materials of $16,000 and Indirect materials of $5,000 were requisitioned for production. c. Factory payroll for the month was $78,000. The following rates applied: federal income tax withholding 12%; Provincial income tax withholding 7%; CPP 6%; pension plan 2%; Employment Insurance 6.2%. d. Goodman's payroll tax burden and fringe benefits rates are: vacation pay (2 weeks when 50 weeks are worked); health insurance 3%; CPP 6%; and clean air surcharge 3%. e. Direct labor costs were $61,000. Indirect labor costs were $17,000. f. Actual overhead costs paid on account were $15,000, and depreciation on factory equipment totaled $37,000. g.Overhead was applied at a rate of 150 percent of direct labor cost. h.All products were completed and transferred to finished goods on January 31. The balance in WIP on January 1 was $12,000. i. The products in Finished Goods were sold.

Prepare the necessary journal entries for the Goodman Company for the month of January in order from 1 to 9. Goodman uses our Standard Manufacturing Journal Entry System, and the raw materials beginning inventory on January 1 was zero. a. Raw materials purchases on account for January were $23,000. b.Direct materials of $16,000 and Indirect materials of $5,000 were requisitioned for production. c. Factory payroll for the month was $78,000. The following rates applied: federal income tax withholding 12%; Provincial income tax withholding 7%; CPP 6%; pension plan 2%; Employment Insurance 6.2%. d. Goodman's payroll tax burden and fringe benefits rates are: vacation pay (2 weeks when 50 weeks are worked); health insurance 3%; CPP 6%; and clean air surcharge 3%. e. Direct labor costs were $61,000. Indirect labor costs were $17,000. f. Actual overhead costs paid on account were $15,000, and depreciation on factory equipment totaled $37,000. g.Overhead was applied at a rate of 150 percent of direct labor cost. h.All products were completed and transferred to finished goods on January 31. The balance in WIP on January 1 was $12,000. i. The products in Finished Goods were sold.

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Description: Prepare the necessary journal entries for the Goodman Company for the month of January in orderfrom 1 to 9. Goodman uses our Standard Manufacturing Journal Entry System, and the raw materialsbeginning inventory on January 1 was zero.a. Raw materials

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 8SPB

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