Journal Entries, T-Accounts Kapoor Company uses job-order costing. During January, the following data were reported: Materials purchased on account: direct materials, $98,500; indirect materials, $14,800. Materials issued: direct materials, $82,500; indirect materials, $8,800. Labor cost incurred: direct labor, $67,000; indirect labor, $18,750. Other manufacturing costs incurred (all payables), $46,200. Overhead is applied on the basis of 110 percent of direct labor cost. Work finished and transferred to Finished Goods Inventory cost $230,000. (1) Finished goods costing $215,000 were (2) sold on account for 140 percent of cost. Make the entry to record the cost of the jobs first, followed by the entry to record the revenue from their sale. Any over- or underapplied overhead is closed to Cost of Goods Sold. Required:
1. Prepare journal entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Materials $
Accounts Payable $
b. Work in Process $ $
Overhead Control $ $
Materials $ $
c. Work in Process $ $
Overhead Control $ $
Wages Payable $ $
d. Overhead Control $
Various Payables $
e. Work in Process $
Overhead Control $
f. Finished Goods $
Work in Process $
g (1). Cost of Goods Sold $
Finished Goods $
g (2). Accounts Receivable $
Sales Revenue $
h. Cost of Goods Sold $
Overhead Control $
2. Prepare a T-account for Overhead Control. Post the entries to the T-account in the same order in which they were journalized. If an amount is zero, enter "0". What is the ending balance in this account?
Overhead Control
b
e
c
d
Balance
h
Balance
3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10,000, and post the entries to the T-account in the same order in which they were journalized. Work in Process Inventory
Beginning Balance
f
b
c
e
Balance