The following information is available for Annum Corporation for the current year:Cost of goods sold …………………………..$292,000Depreciation of factory equipment ………….25,200Direct labor …………………..………………64,750Finished goods inventory, beginning ….45,000Factory insurance ……………………………11,200Factory utilities ………………………………16,800Goods transferred from Work in ProcessInventory to Finished Goods Inventory ……285,150Indirect labor …………………………………8,400Raw materials inventory, beginning….... 4,200Raw materials purchased ……………………. 116,200Raw materials used in production(includes $7,000 of indirect materials) ….....121,800Rent on factory building

Question

……………………...22,400Annum Company uses a predetermined overhead rate of 150% of direct labor cost. Prepare journal entries for the following transactions and events.(a) Purchase of raw materials on account.(b) Assignment of materials costs to Work in Process Inventory and Factory Overhead.(c) Assignment of factory payroll to Work in Process Inventory and Factory Overhead.(d) Recording of other factory overhead. Assume that all items other than depreciation are paid in cash.(e) Apply factory overhead to Work in Process Inventory.(f) Transfer of goods completed to Finished Goods Inventory.(g) Recording cost of goods sold.(h) Assignment of over- or underapplied overhead to Cost of Goods Sold.

What will be an ideal response?

Answer 1