Prepare the journal entries to record raw materials purchase

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Reference no: EM131247510

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Estimated total fixed manufacturing overhead $15,000 Estimated variable manufacturing overhead per direct labor-hour $ 2.00 Estimated total direct labor-hours to be worked 3,000 Total actual manufacturing overhead costs incurred $19,000 Direct materials Job P $19,500 Job Q $9,000 Direct labor cost Job P $31,500 Job Q $7,500 Actual direct labor-hours worked Job P 2,100 Job Q 500 1. Assume the ending raw materials inventory is $2,000 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production.

Reference no: EM131247510

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