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24 December, 07:42

PA14.

LO 4.8A movie production studio incurred the following costs related to its current movie:

Purchased office supplies on account: $33,000

Issued direct supplies: $22,512

Issued indirect supplies: $7,535

Time tickets showing direct labor: $32,503,230

Time tickets showing indirect labor: $574,326

Utilities expense on account: $957,323

Overhead applied: 10% of direct labor cost

Create journal entries for the listed transactions.

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  1. 24 December, 10:42
    0
    Journal entries for each listed transaction is given below.

    Purchased office supplies on account: $33,000

    Debit Supplies Account $33,000

    Credit Payable/Cash $33,000

    Issued direct supplies: $22,512

    Debit WIP Studio $22,512

    Credit Supplies Account $22,512

    Issued indirect supplies: $7,535

    Debit WIP Studio $7,535

    Credit Supplies Account $7,535

    Time tickets showing direct labor: $32,503,230

    Debit WIP Studio $32,503,230

    Credit Payroll Account $32,503,230

    Time tickets showing indirect labor: $574,326

    Debit Factory overhead control Account $574,326

    Credit Payroll Account $574,326

    Utilities expense on account: $957,323

    Debit Factory overhead control Account $957,323

    Credit Utilities expense $957,323

    Overhead applied: 10% of direct labor cost

    Debit WIP Studio $3,250,323

    Credit Applied factory overhead Account $3,250,323

    (10% of 32,503,230)
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