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:

Lying

The act of deliberately making a false statement or representation with the intention to deceive.

Nonverbal Behaviors

Communication methods other than verbal language, including body language, gestures, facial expressions, and eye contact.

Lying

The act of communicating false information to others, often with the intent to deceive or mislead.

Spot

A specific place or area.