Reference no: EM131538566
Question: The following journal entries are recorded in Kiera Co.'s process cost accounting system. Kiera produces handbags and scarves. Overhead is applied to production based on direct labor cost for the period. Prepare a brief explanation (including any overhead rates applied) for each journal entry a through j.
a. Raw Materials Inventory . . . . . . . . . . . . . . . . . . . . 54,000
Accounts Payable . . . . . . . . . . . . . . . . . . . . . 54,000
b. Goods in Process Inventory . . . . . . . . . . . . . . . . . 44,000
Raw Materials Inventory . . . . . . . . . . . . . . . . 44,000
c. Factory Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
d. Goods in Process Inventory . . . . . . . . . . . . . . . . . 28,000
Factory Payroll . . . . . . . . . . . . . . . . . . . . . . . 28,000
e. Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . 10,500
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500
f. Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Raw Materials Inventory . . . . . . . . . . . . . . . . 3,000
g. Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Factory Payroll . . . . . . . . . . . . . . . . . . . . . . . 8,000
h. Goods in Process Inventory . . . . . . . . . . . . . . . . . 35,000
Factory Overhead . . . . . . . . . . . . . . . . . . . . . 35,000
i. Finished Goods Inventory . . . . . . . . . . . . . . . . . . 98,000
Goods in Process Inventory . . . . . . . . . . . . . 98,000
j. Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . 256,000
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,000
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . 104,000
Finished Goods Inventory . . . . . . . . . . . . . . 104,000