Reference no: EM132662152
Alexa Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: Raw materials $26,000 Work in process $47,000 Finished goods $133,000 The company applies overhead to jobs using a pre-determined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work 31,000 machine hours and incur $248,000 in manufacturing overhead cost.
The following transactions were recorded for the year:
a. Raw materials purchased: $411,000
b Raw materials requisitioned for use in production: $409,000 ($388,000 direct and $21,000 indirect)
C. The following employee costs were incurred:
Direct labour: $145,000
Indirect labour: $61,000
Administrative salaries: $190,000
d. Selling costs: $148,000
e. Factory utility costs: $12,000
Required:
Problem 1: Make the appropriate journal entry for each of the items above (a through e). You can assume that all transactions with employees, customers, and suppliers were conducted in cash.