Journalize the following transactions for Malone Custom Furniture Manufacturing

Question

a. Incurred and paid advertising expenses, $3,500.
b. Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40% of which was indirect labor.
c. Purchased raw materials on account, $27,000.
d. Used in production: direct materials, $12,000; indirect materials,$5,500
e. Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance (previously paid), $1,800; plant property tax, $4,500 (credit Property Tax Payable).
f. Allocated manufacturing overhead to jobs, 150% of direct labor costs.
g. Completed production on jobs with costs of $55,000.
h. Sold inventory on account, $64,000; cost of goods sold, $35,000.
i. Adjusted for overallocated or underallocated overhead.

What will be an ideal response

Answer 1

Item Accounts and Explanation Debit Credit
a. Advertising Expenses 3,500
Cash 3,500

b. Work-in-Process Inventory 18,000
Manufacturing Overhead 12,000
Wages Payable 30,000

c. Raw Materials Inventory 27,000
Accounts Payable 27,000

d. Work-in-Process Inventory 12,000
Manufacturing Overhead 5,500
Raw Materials Inventory 17,500

e. Manufacturing Overhead 14,000
Accumulated Depreciation—Plant 14,000

Manufacturing Overhead 1,800
Prepaid Insurance 1,800

Manufacturing Overhead 4,500
Property Tax Payable 4,500

f. Work-in-Process Inventory ($18,000 x 150%) 27,000
Manufacturing Overhead 27,000

g. Finished Goods Inventory 55,000
Work-in-Process Inventory 55,000

h. Accounts Receivable 64,000
Sales Revenue 64,000

Cost of Goods Sold 35,000
Finished Goods Inventory 35,000

i. Cost of Goods Sold 10,800
Manufacturing Overhead 10,800