Prepare Journal Entries to Record the Following Transactions and Events

question 155

Essay

Prepare journal entries to record the following transactions and events for April using a job order cost accounting system.
(a) Purchased raw materials on credit, $69,000.
(b) Raw materials requisitioned: $26,000 direct and $5,400 indirect.
(c) Factory payroll totaled $46,000 (paid in cash), including $9,500 indirect labor.
(d) Paid other actual overhead costs totaling $14,500 cash.
(e) Applied overhead totaling $28,200.
(f) Finished and transferred jobs totaling $77,500.
(g) Jobs costing $58,800 were sold on credit for $103,000.

---

Definitions:

Investment

Expenditures that increase the volume of physical capital (roads, factories, wireless networks) and intangible ideas (formulas, processes, algorithms) that help to produce goods and services. Also known as economic investment. Not to be confused with financial investment.

Marginal Analysis

The comparison of marginal (“extra” or “additional”) benefits and marginal costs, usually for decision making.

Extra Benefits

Additional advantages or services provided beyond the standard or expected, often included in employment contracts, insurance policies, or membership programs.

Extra Costs

Expenses that are not anticipated, often occurring outside of normal or planned operating expenses.