Answer Happy

Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $101,700 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,900 25,300 75,200 10,320 $ 85,520 c. Time tickets show the following labor used for the month. Job 201 Job 202 Total direct labor. Indirect labor Total labor used $ 40,900 14,300 55,200 25,900 $ 81,100 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment Rent on factory building (payable) Factory utilities (payable) Expired factory insurance Total other factory overhead costs $ 33,700 670 970 4,700 $ 40,040 Prepare journal entries to record the transactions reflected in items a through g.

2 3 4 5 6 7 8 9 10 b(1). b(2). c(1). c(2). d. e. f(1). f(2). g. Work in process inventory Raw materials inventory Factory overhead Raw materials inventory Work in process inventory Factory wages payable Factory overhead Factory wages payable Work in process inventory Factory overhead Finished goods inventory Work in process inventory Accounts receivable Sales Cost of goods sold Finished goods inventory Factory overhead Accumulated depreciation-Factory equipment Accounts payable Prepaid insurance >>>>> 75,200 10,320 55,200 25,900 44,160 123,520 168,860 123,520 X 40,040 75,200 10,320 55,200 25,900 44,160 123,520 168,860 123,520 33,700 1,640 4,700

Beginning Balance a. Ending balance Beginning Balance b. C. 9. Ending balance Beginning Balance 9. Ending balance Raw Materials Inventory 0 101,700 16,180 Factory Overhead 0 10,320 25,900 40,040 32,100 Cost of Goods Sold 0 123,520 123,520 75,200 b. 10,320 b. 44,160 d. Beginning Balance b. C. d. Ending balance Beginning Balance e. Ending balance Work in Process Inventory 0 75,200 55,200 44,160 51,040 123,520 Finished Goods Inventory 0 123,520 0 123,520 e. 9.