RC Corp. uses a job order cost accounting system. During the month of April, the following events occurred:

Question

(a) Purchased raw materials on credit, $32,000.
(b) Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials.
(c) Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor.
(d) Assigned the factory payroll to jobs and overhead.
Make the necessary journal entries to record the above transactions and events. (Use letters above as dates.

Answer 1

Letter A raw materials inventory 32,000
Letter A accounts payable 32,000

Letter B Goods in process inventory 25,800
Letter B factory overhead 10,500
Letter B raw materials inventory 36,300

Letter C factory payroll 37,700
Letter C cash 37,700

Letter D good in process inventory 29,500
Letter D factory overhead 8,200
Letter D factory payroll 37,700