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7 January, 21:42

Nieland Industries has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process-Fabricating, $6,030; Work in Process-Finishing, $4,100; and Finished Goods, $5,600. During the month the following transactions occurred:

1. Purchased $40,000 of raw materials on account.

2. Incurred $65,000 of factory labor. Wages are unpaid.

3. Incurred $35,000 of manufacturing overhead; $30,000 was paid and the remainder is unpaid.

4. Requisitioned materials for Fabricating, $10,000 and Finishing, $8,000.

5. Used factory labor for Finishing, $52,000 and Fabricating, $13,000.

6. Applied $30,000 of overhead based on machine hours used in each department. The Finishing Department used twice as many machine hours as did Fabricating.

Required:

Journalize the transactions for the month.

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Answers (1)
  1. 7 January, 23:17
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    1 Dr Raw Materials Inventory 40,000

    Cr Accounts Payable 40,000

    2 Dr Factory Labor 65,000

    Cr Wages Payable 65,000

    3 Dr Manufacturing Overhead 35,000

    Dr Accounts Payable 5,000

    Cr Cash 30,000

    4 Dr Work in Process-Fabricating 10,000

    Dr Work in Process-Finishing 8,000

    Dr Raw Materials Inventory 18,000

    5 Dr Work in Process-Fabricating 13,000

    Dr Work in Process-Finishing 52,000

    Cr Factory Labor 65,000

    6 Dr Work in Process-Fabricating 10,000

    Dr Work in Process-Finishing 20,000

    Cr Manufacturing Overhead 30,000
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