During August, the Following Transactions Were Recorded at Goyer Corporation

question 131

Essay

During August, the following transactions were recorded at Goyer Corporation. The company uses process costing.(1) Raw materials that cost $24,500 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials.(2) Direct labor costs of $29,000 are incurred, but not yet paid, in the Assembly Department.(3) Manufacturing overhead of $58,900 is applied in the Assembly Department using the department's predetermined overhead rate.(4) Units with a carrying cost of $101,200 finish processing in the Assembly Department and are transferred to the Painting Department for further processing.(5) Units with a carrying cost of $106,100 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse.(6) Finished goods with a carrying cost of $95,100 are sold.Required:Prepare journal entries for each of the transactions listed above.

---

Definitions:

Equipment

Tools or machines required for a specific task or operation, typically in industry, business, or sports.

Straight-Line Method

A method of calculating depreciation of an asset, which divides the difference between its cost and salvage value by the useful life of the asset.

Resale Value

The estimated value or price at which an asset or item can be sold again in the future.

Equipment

Tangible property used in operations, such as machinery, computer hardware, and vehicles.