The following transactions occurred during the month of April for Nelson Company:Apr.1Purchased materials costing $4,610 on account. 3Requisitioned materials totaling $4,800 for use in production, $3,170 for Job 518 and the remainder for Job 519. 14Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month. Direct laborers are paid at the rate of $14 per hour. 15Applied overhead using a plantwide rate of $6.20 per direct labor hour. 25Incurred and paid in cash actual overhead for the month of $973. 27Completed and transferred Job 518 to Finished Goods. 30Sold on account Job 517, which had been completed and transferred to Finished Goods in March, for cost ($2,770) plus 25%. (Enter this as two transactions.) Required:1.Prepare journal entries for transactions from April 1 through 25.2.(a) Prepare job-order cost sheets for Jobs 518 and 519. (b) Prepare journal entries for transactions on April 27 and 30.3.Prepare a schedule of cost of goods manufactured for April. Assume that the beginning balance in the raw materials account was $1,025 and that the beginning balance in the work-in-process account was zero.

1. Journal entries for transactions from April 1 through 25 Date Particulars Debit ($) Credit…

Answered: The following transactions occurred…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 60P: (Appendix 4A) Journal Entries, Job Costs The following transactions occurred during the month of...

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The following transactions occurred during the month of April for Nelson Company:

Apr.	1	Purchased materials costing $4,610 on account.
	3	Requisitioned materials totaling $4,800 for use in production, $3,170 for Job 518 and the remainder for Job 519.
	14	Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month. Direct laborers are paid at the rate of $14 per hour.
	15	Applied overhead using a plantwide rate of $6.20 per direct labor hour.
	25	Incurred and paid in cash actual overhead for the month of $973.
	27	Completed and transferred Job 518 to Finished Goods.
	30	Sold on account Job 517, which had been completed and transferred to Finished Goods in March, for cost ($2,770) plus 25%. (Enter this as two transactions.)

	Required:
1.	Prepare journal entries for transactions from April 1 through 25.
2.	(a) Prepare job-order cost sheets for Jobs 518 and 519. (b) Prepare journal entries for transactions on April 27 and 30.
3.	Prepare a schedule of cost of goods manufactured for April. Assume that the beginning balance in the raw materials account was $1,025 and that the beginning balance in the work-in-process account was zero.

Expert Solution

Step 1

Journal entries for transactions from April 1 through 25
Date	Particulars	Debit ($)	Credit ($)
Apr. 1	Raw materials A/c Dr	4,610
	To Accounts payable A/c		4,610
Apr. 3	Work in process A/c Dr	4,800
	To Raw materials Inventory A/c		4,800
Apr. 14	Work in process A/c Dr	2,170
	To Factory labour A/c		2,170
	$(65 + 90) \times 14$
Apr. 15	Work in process A/c Dr	961
	To Factory overhead A/c		961
	$(65 + 90) \times 6.20$
Apr. 25	Factory overhead A/c Dr	973
	To Cash A/c		973

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