Astro Manufacturing had the following production data for the week ended July 31, 20XX, with zero beginning balances in all of its inventory accounts:
Monday: Purchased $137,000 of raw materials on account.
Tuesday: Requisitioned $83,000 of direct materials into production and assigned $39,000 of direct labor to production.
Wednesday: Added $24,000 of manufacturing overhead to production related to utilities.
Thursday: Completed production on 60% of the production and transferred the completed units to finished goods inventory.
Friday: Sold 50% of the goods that were transferred to Finished Goods Inventory for $65,000 cash.
a) Prepare the necessary journal entries to record the production of units for July.
b) Compute the ending balances in the Raw Materials Inventory, Work-In-Process Inventory, and Finished Goods Inventory at the end of July.

Question

Astro Manufacturing had the following production data for the week ended July 31, 20XX, with zero beginning balances in all of its inventory accounts: 
Monday: Purchased $137,000 of raw materials on account. 
Tuesday: Requisitioned $83,000 of direct materials into production and assigned $39,000 of direct labor to production. 
Wednesday: Added $24,000 of manufacturing overhead to production related to utilities. 
Thursday: Completed production on 60% of the production and transferred the completed units to finished goods inventory. 
Friday: Sold 50% of the goods that were transferred to Finished Goods Inventory for $65,000 cash. 
a) Prepare the necessary journal entries to record the production of units for July. 
b) Compute the ending balances in the Raw Materials Inventory, Work-In-Process Inventory, and Finished Goods Inventory at the end of July.

Quizplus · Accepted Answer

The Answer of Astro Manufacturing had the following production data for the week ended July 31, 20XX, with zero beginning balances in all of its inventory accounts: 
Monday: Purchased $137,000 of raw materials on account. 
Tuesday: Requisitioned $83,000 of direct materials into production and assigned $39,000 of direct labor to production. 
Wednesday: Added $24,000 of manufacturing overhead to production related to utilities. 
Thursday: Completed production on 60% of the production and transferred the completed units to finished goods inventory. 
Friday: Sold 50% of the goods that were transferred to Finished Goods Inventory for $65,000 cash. 
a) Prepare the necessary journal entries to record the production of units for July. 
b) Compute the ending balances in the Raw Materials Inventory, Work-In-Process Inventory, and Finished Goods Inventory at the end of July.

Astro Manufacturing Had the Following Production Data for the Week