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13 July, 18:29

PB13.

LO 4.7The following events occurred during March for Ajax Company. Prepare a journal entry for each transaction.

Materials were purchased on account for $5,429.

Materials were requisitioned to begin work on Job C15 in the amount of $2,500.

Direct labor expense for Job C15 was $4,250.

Actual overhead was incurred on account for $5,385.

Factory overhead was charged to Job C15 at the rate of 200% direct labor.

Job C15 was transferred to finished goods at $15,250.

Job C15 was sold on account for $28,000.

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  1. 13 July, 21:13
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    Journal entry for each transaction is given below.

    Materials were purchased on account for $5,429.

    Debit Material Account $5,429

    Credit Payable $5,429

    Materials were requisitioned to begin work on Job C15 in the amount of $2,500.

    Debit WIP JOB C15 Account $2,500

    Credit Material Account $2,500

    Direct labor expense for Job C15 was $4,250.

    Debit WIP JOB C15 Account $4,250

    Credit Payroll Account $4,250

    Actual overhead was incurred on account for $5,385.

    Debit Factory Overhead Control Account $5,385

    Credit Expense payable/cash $5,385

    Factory overhead was charged to Job C15 at the rate of 200% direct labor.

    Debit WIP JOB C15 Account $8,500

    Credit Applied Factory overhead Account $8,500

    Job C15 was transferred to finished goods at $15,250.

    Debit Finished Good Account $15,250

    Credit WIP JOB C15 Account $15,250

    Job C15 was sold on account for $28,000

    (2 entries will be passed at this stage)

    Debit Cost of Good Sold $15,250

    Credit Finished Good Account $15,250

    Debit Receivable/Cash Account $28,000

    Credit Sales $28,000
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