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12 May, 16:38

PA13.

LO 5.5Selected information from Skylar Studios shows the following:

Prepare journal entries to record the following:

raw material purchased

direct labor incurred

depreciation expense (hint: this is part of manufacturing overhead)

raw materials used

overhead applied on the basis of $0.50 per machine hour

the transfer from department 1 to department 2

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Answers (1)
  1. 12 May, 19:17
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    As per my research the complete question is

    "Selected information from Skylar Studios shows the following:

    Raw materials purchased $5,000, Direct materials $1,500, Direct labor $11,000, Factory depreciation $2,000, Total manufacturing overhead incurred $15,000, Machine hours per month 28,000, Unit cost for material $2, Unit cost of conversion $8, Number units transferred 15,000. Prepare journal entries to record the following:

    raw material purchased

    direct labor incurred

    depreciation expense (hint: this is part of manufacturing overhead)

    raw materials used

    overhead applied on the basis of $0.50 per machine hour

    the transfer from department 1 to department 2"

    Answer:

    The journal entries to record the transactions given in problem are given below.

    raw material purchased

    Debit RM inventory $5000

    Credit payable/cash $5000

    direct labor incurred

    Debit WIP Dep 1 $11000

    Credit Payroll Account $11000

    depreciation expense (hint: this is part of manufacturing overhead)

    Debit Factory Overhead Control Account $2000

    Credit Accumlated Depreciation $2000

    raw materials used

    Debit WIP Dep 1 $1500

    Credit RM inventory $1500

    overhead applied on the basis of $0.50 per machine hour

    Debit WIP Dep 1 $14000

    Credit Applied Factor overhead $14000

    (28000 * 0.5)

    the transfer from department 1 to department 2

    Debit WIP Dep 2 $150000

    Credit WIP Dep 1 $150000

    (15000 * 10)
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