Prepare the Journal Entries to Record the Following Transactions for Kilts

question 98

Essay

Prepare the journal entries to record the following transactions for Kilts & More, a company that produces hand-sewn kilts to Americans celebrating at Irish Festivals around the country.
a. Purchased $140,000 of material (3,500 yards) in cash.
b. Issued $120,000 of material (3,000 yards) into production.
c. Paid $45,000 cash in production labor costs.
d. Applied overhead at the predetermined rate of $12 per yard.
e. Incurred $42,000 of actual overhead costs, paid in cash. (Assume any difference between actual and applied overhead costs is adjusted directly to cost of goods sold.)
f. Completed 5,000 kilts. (Approximately $51,000 of inventory remains in process, so the cost of each helmet is approximately $______.)
g. Sold 4,500 kilts at $80.00 per unit. (All proceeds were collected in cash.)
h. Disposed of any over- or under-applied overhead cost.

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Definitions:

Scapula

A flat, triangular bone located in the upper back, part of the shoulder girdle that provides attachment for several muscles.

Anterior Crest

The forward edge or prominent front border of a bone, often referring to the shinbone.

Tibia

A large bone in the lower leg, known as the shinbone, that bears most of the body's weight.

Fibula

A slender bone located on the lateral side of the tibia in the lower leg, playing a role in stabilizing the ankle and supporting lower leg muscles.