Prepare the Journal Entries to Record the Following Transactions for Kilts

question 102

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 kilt 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:

Optional

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Strategies or actions taken to reduce expenses and improve efficiency, often to increase profitability.

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