The Simkins Corporation uses a job-order costing system. The following activities took place during the month of May:a.Raw materials purchased$40,000b.Raw materials (all direct) used in production$35,000c.Salaries and wages costs:??Direct labor cost$60,000?Indirect labor cost$30,000?Sales salaries$25,000d.Factory utility costs$15,000e.Depreciation on factory equipment$50,000f.Advertising expense$80,000g.Manufacturing overhead is applied at the predetermined rate of 150% of direct labor cost.?h.Cost of Goods Manufactured for the month$180,000i.Cost of Goods Sold for the month$150,000Required:Prepare journal entries to record the information given above. Key your entries by the letters a through i.
What will be an ideal response?
| a. | Raw materials inventory | 40,000 | ? |
| ? | Accounts payable | ? | 40,000 |
| ? | ? | ? | ? |
| b. | Work in process | 35,000 | ? |
| ? | Raw materials inventory | ? | 35,000 |
| ? | ? | ? | ? |
| c. | Work in process | 60,000 | ? |
| ? | Manufacturing overhead | 30,000 | ? |
| ? | Sales salaries expense | 25,000 | ? |
| ? | Wages and salaries payable | ? | 115,000 |
| ? | ? | ? | ? |
| d. | Manufacturing overhead | 15,000 | ? |
| ? | Accounts payable | ? | 15,000 |
| ? | ? | ? | ? |
| e. | Manufacturing overhead | 50,000 | ? |
| ? | Accumulated depreciation | ? | 50,000 |
| ? | ? | ? | ? |
| f. | Advertising expense | 80,000 | ? |
| ? | Accounts payable | ? | 80,000 |
| ? | ? | ? | ? |
| g. | Work in process | 90,000 | ? |
| ? | Manufacturing overhead | ? | 90,000 |
| ? | $60,000 × 150% = $90,000 | ? | ? |
| ? | ? | ? | ? |
| h. | Finished goods | 180,000 | ? |
| ? | Work in process | ? | 180,000 |
| ? | ? | ? | ? |
| i. | Cost of goods sold | 150,000 | ? |
| ? | Finished goods | ? | 150,000 |
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