Answer:
A: Journal entries
Sr.No Accounts Dr. Cr.
117 Stores Ledger Control Account $ 210,000
203 Accounts Payable $ 210,000
Raw materials purchased on account, $210,000.
b. Work In Process $ 151,200
Factory Overhead $ 37,800
Materials $ 189,000
Raw materials issued to production, $189,000 ($151,200 direct materials and $37,800 indirect materials).
c. Work In Process $50,000
Factory Overhead $ 20,000
Wages Control Account $ 70,000
Direct labor cost incurred, $50,000; indirect labor cost incurred, $20,000.
d. Factory Overhead 105,000
Provision For Deprecation Account 105,000
Depreciation recorded on factory equipment, $105,000.
e. Factory Overhead Control Account $131,000
Accounts Payable $131,000
Other manufacturing overhead costs incurred during October, $131,000 (credit Accounts Payable).
f. Work In Process $608,000
Factory Overhead Control Account $608,000
The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 76,000 machine-hours were recorded for October.
g. Finished Goods $ 511,000
Work In Process $ 511,000
Production orders costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
h. Account Receivable $ 623,760
Sales Account $ 623,760
Cost Of Goods Sold $ 452,000
Finished Goods Inventory $ 452,000
Production orders that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 38% above cost.
