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Journal Entries and T-Accounts Overview

The document contains journal entries to record various manufacturing costs including direct materials, direct labor, manufacturing overhead costs, and the allocation and transfer of costs through work-in-process and finished goods accounts. It also includes T-accounts to support the journal entries showing beginning balances, debits, and credits for direct materials, work-in-process, finished goods, cost of goods sold, manufacturing overhead, and manufacturing overhead allocated accounts.

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Nguyễn Thị Thanh Thúy
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9 views6 pages

Journal Entries and T-Accounts Overview

The document contains journal entries to record various manufacturing costs including direct materials, direct labor, manufacturing overhead costs, and the allocation and transfer of costs through work-in-process and finished goods accounts. It also includes T-accounts to support the journal entries showing beginning balances, debits, and credits for direct materials, work-in-process, finished goods, cost of goods sold, manufacturing overhead, and manufacturing overhead allocated accounts.

Uploaded by

Nguyễn Thị Thanh Thúy
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 4

Answer template for Question 4

1. Journal Entries

i. Direct Materials Control $124,000


Accounts Payable Control $124,000

(To record Purchases of materials)

ii. Work in Process Control $122,000


Direct Materials Control $122,000

(To record Usage of materials)


(124+9-11)

iii. Work in Process Control $80,000


Manufacturing Overhead Control $54,500
Wages Payable Control $134,500
(To record Manufacturing labor cost – direct & indirect)

iv. Manufacturing Overhead Control $129,500


Salaries Payable Control $20,000

Accounts Payable Control $9,500


Accumulated Depreciation Control $30,000
Rent Payable Control $70,000

1
(To record Other Manufacturing Overhead costs)

v. Work in Process Control $200,000


Manufacturing Overhead Allocated $200,000
(80k*$2.5)
(To record Allocation of Manufacturing Overhead costs)

vi. Finished Goods Control $387,000


Work in Process Control $387,000
(122+80+200+6-21)
(To record Cost of products completed and transferred to finished goods)

vii. Cost of Goods Sold $432,000


Finished Goods Control $432,000
387+69-24
(To record Cost of goods sold)

viii. Manufacturing Overhead Allocated $200,000


Manufacturing Overhead Control 184,000
Cost of Goods Sold 16,000
(To record Close out over- or under-allocated overhead to cost of goods sold)
184=54.5+30+7+20+9.5

ix. Administrative Expenses $7,000


Marketing Expenses 120,000

2
Salaries Payable Control 30,000
Accounts Payable Control 90,000
Accumulated Depreciation, Office Equipment 7,000
(To record Administrative and Marketing Expenses)

2. T-accounts

Direct Materials Control


Beg $9,000
Materials used $122,000
Purchase $124,000

Balance: $11,000

Work-in-Process Control
Beg WIP $6,000 Cost of goods manufactured $387,000
Direct material used $122,000
Direct labour used $80,000
MO allocated $200,000

Closing balance $21,000

3
Finished Goods Control
Beg. $69,000
COGS $432,000
Cost of goods manufactured 387,000

Balance $24,000

Cost of Goods Sold


COGS $432,000
Adjusted 16,000

Balance 416

4
Manufacturing Overhead Control
In direct labour $54,500
To Close the account $184,000
Supplies $20,000
Miscellaneous 9,500
Depreciation 30,000
Rent 70,000

End 0

Manufacturing Overhead Allocated


To close $200,000
MO allocated $200,000

End 0

5
Chap 5 câu 2 3 Assume that the Walliston Group uses a cause-and-effect criterion when choosing the
allocation base for support services. You could use several pieces of evidence to determine whether
professional labor costs or hours is the driver of support-service costs: a. Interviews with personnel. For
example, staff in the major cost categories in support services could be interviewed to determine whether
Walliston requires more support per hour than, say, Abbington. The professional labor costs allocation
base implies that an hour of Walliston’s time requires 6.40 ($640 ÷ $100) times more support-service
dollars than does an hour of Abbington’s time
Analysis of tasks undertaken for selected clients. For example, if computer-related costs are a sizable
part of support costs, you could determine if there was a systematic relationship between the percentage
involvement of professionals with high billing rates on cases and the computer resources consumed for
those cases.

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