Question
Journalize the Mar. 31 summary entries to record each of the following operations for March (one entry for each operation).
a. Direct and indirect materials used.
b. Direct and indirect labor used.
c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
d. Completion of Jobs 301 and 302.
General Journal Instructions
All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.
PAGE 10
JOURNALACCOUNTING EQUATION
Score: 74/125
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
Mar. 31
Factory
78,700.00
↑
Materials
78,700.00
↓
Mar. 31
Factory
53,200.00
↑
Factory Overhead
11,100.00
↑
Wages Payable
64,300.00
↑
Mar. 31
Factory
20,296.00
↑
Factory Overhead
20,296.00
↓
Mar. 31
Finished Goods
48,904.00
↑
Factory
48,904.00
↓
Points:
14.21 / 24
Check My Work
a. Record direct materials costs in the Work in Process account, and indirect materials costs in the Factory Overhead account.
b. Record direct labor costs in the Work in Process account, and indirect labor costs in the Factory Overhead account.
c. Apply factory overhead based on direct labor costs.
d. When a job is completed, it is transferred out of work-in-process and into finished goods.
a. Direct and indirect materials used.
b. Direct and indirect labor used.
c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
d. Completion of Jobs 301 and 302.
General Journal Instructions
All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.
PAGE 10
JOURNALACCOUNTING EQUATION
Score: 74/125
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
Mar. 31
Factory
78,700.00
↑
Materials
78,700.00
↓
Mar. 31
Factory
53,200.00
↑
Factory Overhead
11,100.00
↑
Wages Payable
64,300.00
↑
Mar. 31
Factory
20,296.00
↑
Factory Overhead
20,296.00
↓
Mar. 31
Finished Goods
48,904.00
↑
Factory
48,904.00
↓
Points:
14.21 / 24
Check My Work
a. Record direct materials costs in the Work in Process account, and indirect materials costs in the Factory Overhead account.
b. Record direct labor costs in the Work in Process account, and indirect labor costs in the Factory Overhead account.
c. Apply factory overhead based on direct labor costs.
d. When a job is completed, it is transferred out of work-in-process and into finished goods.
Answers
GPT-4o mini
To journalize the Mar. 31 summary entries for the operations mentioned, we will break down each operation and ensure that each entry adheres to standard accounting practices. Below are the journal entries to reflect each operation:
### a. Direct and Indirect Materials Used
- **Direct Materials** are recorded in the Work in Process (WIP) account.
- **Indirect Materials** are recorded in the Factory Overhead account.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Work in Process (Direct Materials) 78,700.00
Factory Overhead (Indirect Materials) 78,700.00
```
### b. Direct and Indirect Labor Used
- **Direct Labor** is recorded in the Work in Process account.
- **Indirect Labor** is recorded in the Factory Overhead account.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Work in Process (Direct Labor) 53,200.00
Wages Payable (Indirect Labor) 11,100.00
Factory Overhead (Indirect Labor) 64,300.00
```
### c. Factory Overhead Applied
- Apply factory overhead based on direct labor costs.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Factory Overhead (Applied Overhead) 20,296.00
Work in Process 20,296.00
```
### d. Completion of Jobs 301 and 302
- Transfer costs from Work in Process to Finished Goods when jobs are completed.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Finished Goods (Jobs 301 and 302) 48,904.00
Work in Process 48,904.00
```
### Summary of Entries:
1. **Entry for Direct and Indirect Materials:** Debit Work in Process, Credit Factory Overhead.
2. **Entry for Direct and Indirect Labor:** Debit Work in Process, Credit Wages Payable and Factory Overhead.
3. **Entry for Factory Overhead Applied:** Debit Factory Overhead, Credit Work in Process.
4. **Entry for Completion of Jobs:** Debit Finished Goods, Credit Work in Process.
Each entry reflects the use of debits and credits to maintain the accounting equation, ensuring that assets, liabilities, and equity balance with the changes in accounts.
### a. Direct and Indirect Materials Used
- **Direct Materials** are recorded in the Work in Process (WIP) account.
- **Indirect Materials** are recorded in the Factory Overhead account.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Work in Process (Direct Materials) 78,700.00
Factory Overhead (Indirect Materials) 78,700.00
```
### b. Direct and Indirect Labor Used
- **Direct Labor** is recorded in the Work in Process account.
- **Indirect Labor** is recorded in the Factory Overhead account.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Work in Process (Direct Labor) 53,200.00
Wages Payable (Indirect Labor) 11,100.00
Factory Overhead (Indirect Labor) 64,300.00
```
### c. Factory Overhead Applied
- Apply factory overhead based on direct labor costs.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Factory Overhead (Applied Overhead) 20,296.00
Work in Process 20,296.00
```
### d. Completion of Jobs 301 and 302
- Transfer costs from Work in Process to Finished Goods when jobs are completed.
```plaintext
Date Description Post Ref. Debit Credit
Mar. 31 Finished Goods (Jobs 301 and 302) 48,904.00
Work in Process 48,904.00
```
### Summary of Entries:
1. **Entry for Direct and Indirect Materials:** Debit Work in Process, Credit Factory Overhead.
2. **Entry for Direct and Indirect Labor:** Debit Work in Process, Credit Wages Payable and Factory Overhead.
3. **Entry for Factory Overhead Applied:** Debit Factory Overhead, Credit Work in Process.
4. **Entry for Completion of Jobs:** Debit Finished Goods, Credit Work in Process.
Each entry reflects the use of debits and credits to maintain the accounting equation, ensuring that assets, liabilities, and equity balance with the changes in accounts.