Prepare Journal Entries for the Following Transactions Related to a Manufacturing

question 109

Essay

Prepare journal entries for the following transactions related to a manufacturing operation.
a. The firm acquires manufacturing equipment for $45,000 cash.
b. The firm purchases raw materials costing $36,000 on account.
c. The firm issues raw materials costing $15,000 to the production department.
d. Payroll of $35,000 is paid: $20,000 to direct factory workers and $15,000 to sales personnel.
e. Utilities of $1,000 are paid: $300 for manufacturing equipment, $500 for factory building, and $200 for the administrative offices.
f. Depreciation on the building and equipment is as follows: Factory building $4,550, manufacturing equipment $500, and sales and administration building $1,000.
g. Units completed and transferred to finished goods total $37,000.
h. Cost of goods sold for the period is $40,000.

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Definitions:

Mites

Small arthropods belonging to the subclass Acarina (including ticks) that can live in diverse environments, including soil, water, and as parasites on plants and animals.

Nudibranch Mollusks

Colorful sea slugs known for their striking forms and colors, which have shed their shells during evolutionary development.

Tracheal Tubes

A system of branching air ducts within insects that spread across the body to facilitate the exchange of gases.

Body Surface

The outermost layer or covering of an organism's body, including the skin, fur, or scales, which serves as a protective barrier.