Process Costing I. Journalize the following transactions:
1. Madison Co. Purchased $225,500 of raw materials on account.
2. Actual manufacturing overhead costs include:
a. Utilities: $2800 b. Depreciation on equipment: $12,650 c. Repairs on account:
$3200 d. Rent paid:$6,000 e. Insurance (prepaid policy): $3350.
3.Madison Co. issued $75,500 of material to Process A.
4. Assigned $18,000 to factory labor, of which 12,000 is indirect labor
5. Manufacturing Overhead costs are applied at 82% of material issued
6. Balance in WIP - A is transferred to Process B
7. $51,000 of material is issued to Process B
8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor
9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of
material issued (to process B)
10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing
overhead costs charged to accounts payable totaled $1,500
11. Balance of Process B is transferred to Finished Goods
12. The cost transferred to finished goods include 62,500 units. Calculate the cost
per unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash;
they sold 4,125 units for $24,500 on account
13. Determine over or under applied manufacturing overhead and prepare adjusting
entry