Journalize the Following Transactions for Malone Custom Furniture Manufacturing (Omit

question 137

Essay

Journalize the following transactions for Malone Custom Furniture Manufacturing (omit explanations):
a.Incurred and paid advertising expenses,$3,500.
b.Incurred manufacturing wages of $30,000,60% of which was direct labor and 40% of which was indirect labor.Wages will be paid at a later date.
c.Purchased raw materials on account,$27,000.
d.Used in production: direct materials,$12,000; indirect materials,$5,500
e.Recorded manufacturing overhead: depreciation on plant,$14,000; plant insurance (previously paid),$1,800; plant property tax,$4,500 (credit Property Tax Payable).
f.Allocated manufacturing overhead to jobs,150% of direct labor costs.
g.Completed production on jobs with costs of $55,000.
h.Sold inventory on account,$64,000; cost of goods sold,$35,000.The company uses the perpetual inventory system.
i.Adjusted for overallocated or underallocated overhead.

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Definitions:

Contingent Liability

A liability that may occur depending on the outcome of a future event.

Business Combination Valuation Entries

Journal entries made in accounting to record the assets and liabilities at their fair values in a business acquisition.

Dividend Payable

A liability recorded on a company's balance sheet representing the amount of dividends declared by the board of directors but not yet paid to shareholders.

Cum Div. Basis

A term indicating that a stock is trading with the right to receive the most recently declared dividend, as opposed to "ex-dividend" where the right is not included in the purchase.