PB12.

LO 4.7The following data summarize the operations during the year. Prepare a journal entry for each transaction.

Purchase of raw materials on account: $1,500

Raw materials used by Job 1: $400

Raw materials used as indirect materials: $50

Direct labor for Job 1: $200

Indirect labor incurred for Job 1: $30

Factory utilities incurred on account: $500

Adjusting entry for factory depreciation: $200

Manufacturing overhead applied as percent of direct labor: 100%

Job 1 is transferred to finished goods

Job 1 is sold: $1,000

Manufacturing overhead is underapplied: $100

Journal entry for each transaction is given below.

Purchase of raw materials on account: $1,500

Debit Raw material account $1,500

Credit Payable Account $1,500

Raw materials used by Job 1: $400

Debit WIP job 1 $400

Credit Raw material account $400

Raw materials used as indirect materials: $50

Debit FOH control Account $50

Credit Raw material account $50

Direct labor for Job 1: $200

Debit WIP job 1 $200

Credit Payroll Account $200

Indirect labor incurred for Job 1: $30

Debit FOH control Account $30

Credit Payroll Account $30

Factory utilities incurred on account: $500

Debit FOH control Account $500

Credit Utilities payable $500

Adjusting entry for factory depreciation: $200

Debit FOH control Account $200

Credit Accumlated Depreciation $200

Manufacturing overhead applied as percent of direct labor: 100%

Debit WIP job 1 $200

Credit Applied FOH account $200

Job 1 is transferred to finished goods

Debit Finished Good Account $800

Credit WIP job 1 $800

Job 1 is sold: $1,000

Debit COGS $800

Credit Finished Good Account $800

Debit Account Receivable $1000

Credit Sales $1000

Manufacturing overhead is underapplied: $100

Debit COCS Account $100

Credit Factory overhead account $100