Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.
June 1 Purchased raw materials for $20,000 on account.
8 Raw materials requisitioned by production:
15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.
25 Incurred $84,000 of factory labor.
25 Time tickets indicated the following:
25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked.
28 Goods costing $18,000 were completed in the factory and were transferred to finished goods.
30 Goods costing $15,000 were sold for $20,000 on account.

Question

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.
June 1 Purchased raw materials for $20,000 on account.
8 Raw materials requisitioned by production:  
15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.
25 Incurred $84,000 of factory labor.
25 Time tickets indicated the following:
25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked.
28 Goods costing $18,000 were completed in the factory and were transferred to finished goods.
30 Goods costing $15,000 were sold for $20,000 on account.

Quizplus · Accepted Answer

The Answer of Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.
June 1 Purchased raw materials for $20,000 on account.
8 Raw materials requisitioned by production:  
15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.
25 Incurred $84,000 of factory labor.
25 Time tickets indicated the following:
25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked.
28 Goods costing $18,000 were completed in the factory and were transferred to finished goods.
30 Goods costing $15,000 were sold for $20,000 on account.

Finn Manufacturing Company Uses a Job Order Cost Accounting System