Reference no: EM132472138
Question 1: Malone, Inc. uses a job-order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of July:
Point 1: Jul 2 Purchased raw materials for $23,000 on account.
Point 2: 4 Purchased office supplies for $750 cash.
Point 3: 9 Raw materials requisitioned by production:
Point 4: Direct materials $12,300
Point 5: Indirect materials 1,760
Point 6: 14 Paid factory utilities, $3,100 and repairs for factory equipment, $3,600.
Point 7: 15 Received property tax bill of $9,850 and accrued for payment at month-end. Sales office space is 750 square feet and factory space is 6,450 square feet.
Point 8: 21 Incurred $37,800 of factory labour.
Point 9: 26 Time tickets indicated the following for job 1238:
- Direct Labour (2,700 hrs × $15 per hr) = $40,500
- Indirect
- Labour
- (950 hrs × $12.50 per hr) = 11,875
- $52,375
Point 10: 28 Applied manufacturing overhead to production based on a predetermined overhead rate of $7.50 per direct labour hour worked.
Point 11: 28 Goods costing $63,000 were completed and transferred to finished goods.
Point 12: 30 Goods costing $62,000 were sold for $75,000 on account.