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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
Â
| Â | Â | Â |
| Estimated total fixed manufacturing overhead | $ | 10,000 |
| Estimated variable manufacturing overhead per direct labor-hour | $ | 1.00 |
| Estimated total direct labor-hours to be worked | Â | 2,000 |
| Total actual manufacturing overhead costs incurred | $ | 12,500 |
Â
| Â | Job P | Job Q | ||
| Direct materials | $ | 13,000 | $ | 8,000 |
| Direct labor cost | $ | 21,000 | $ | 7,500 |
| Actual direct labor-hours worked | Â | 1,400 | Â | 500 |
Â
| Required: |
|
Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. |
| General Journal | Debit | Credit |
| (Click to select)Raw materialsWages receivableWages payableAccounts receivableAccounts payableRent payableManufacturing overheadSalaries expense | Â | Â |
| (Click to select)Salaries expenseWages receivableWages payableRaw materialsRent payableAccounts receivableManufacturing overheadAccounts payable | Â | Â |
| Â | Â | Â |
| (Click to select)Wages payableAccounts payableAccounts receivableSalaries expenseRent expenseWork in processWages receivableManufacturing overhead | Â | Â |
| (Click to select)Accounts receivableManufacturing overheadSalaries expenseWages receivableAccounts payableRaw materialsWork in processWages payable |
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