PRO,Inchad the Following Activities During Its Most Recent Period of Operations

question 36

Essay

PRO,Inc.had the following activities during its most recent period of operations:
(a)Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account).
(b)Issued raw materials to production of $130,000 (80% direct and 20% indirect).
(c)Incurred and paid labor costs of $250,000 cash (70% direct and 30% indirect).
(d)Incurred factory utilities costs of $20,000; this amount is still payable.
(e)Applied overhead at 80% of direct labor costs.
(f) Recorded factory depreciation,$22,000.
Prepare journal entries to record the above transactions.

---

Definitions:

Net Sales Revenue

The amount of revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Nonsufficient Funds (NSF)

A situation where a bank account does not have enough money to cover a presented check or withdrawal request.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.