Omari Assembly, Inc, which uses backflush costing, had the following transactions during the month of October : (a) Purchased raw materials on account, $700,000. (b) Requisitioned raw materials to production, $700,000. (c) Distributed direct labor
costs, $105,000. (d) Manufacturing overhead incurred, $215,000 . (Use Various Credits for the account in the credit part of the entry.) (e) Completed all goods. (f) Sold goods for $1,500,00 . on account. Prepare journal entries to record the above transactions.
(a) Raw and In-Process 700,000 .
Accounts Payable 700,000
(b) No entry
(c) Conversion Costs 105,000 .
Payroll 105,000
(d) Conversion Costs 215,000 .
Various Credits 215,000
(e) Finished Goods 1,020,000 .
Raw and In-Process 1,020,000
(f) Accounts Receivable 1,500,000 .
Sales 1,500,000
Cost of Goods Sold 1,020,000 .
Finished Goods 1,020,000
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Your company is planning to borrow $1,000,000 on a 5-year, 15%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?
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Glory Enterprises quality control report for August contains the following items: Liability costs associated with defective products$10,000 Disposal costs of defective products failing inspection 20,000 Disposal costs of raw materials failing inspection 30,000 Quality training provided to workers 40,000 Lost sales due to poor quality and defective products 50,000 Advertising costs to offset perception of poor product quality 60,000 Raw materials used to correct defects before product was sold 70,000 Testing and inspecting a sample of finished goods 80,000 What would be the total of the conformance costs on the August quality control report for Glory Enterprises?
A. $170,000. B. $150,000. C. $200,000. D. $90,000.