PA13.

LO 5.5Selected information from Skylar Studios shows the following:

Prepare journal entries to record the following:

raw material purchased

direct labor incurred

depreciation expense (hint: this is part of manufacturing overhead)

raw materials used

overhead applied on the basis of $0.50 per machine hour

the transfer from department 1 to department 2

As per my research the complete question is

"Selected information from Skylar Studios shows the following:

Raw materials purchased $5,000, Direct materials $1,500, Direct labor $11,000, Factory depreciation $2,000, Total manufacturing overhead incurred $15,000, Machine hours per month 28,000, Unit cost for material $2, Unit cost of conversion $8, Number units transferred 15,000. Prepare journal entries to record the following:

raw material purchased

direct labor incurred

depreciation expense (hint: this is part of manufacturing overhead)

raw materials used

overhead applied on the basis of $0.50 per machine hour

the transfer from department 1 to department 2"

Answer:

The journal entries to record the transactions given in problem are given below.

raw material purchased

Debit RM inventory $5000

Credit payable/cash $5000

direct labor incurred

Debit WIP Dep 1 $11000

Credit Payroll Account $11000

depreciation expense (hint: this is part of manufacturing overhead)

Debit Factory Overhead Control Account $2000

Credit Accumlated Depreciation $2000

raw materials used

Debit WIP Dep 1 $1500

Credit RM inventory $1500

overhead applied on the basis of $0.50 per machine hour

Debit WIP Dep 1 $14000

Credit Applied Factor overhead $14000

(28000 * 0.5)

the transfer from department 1 to department 2

Debit WIP Dep 2 $150000

Credit WIP Dep 1 $150000

(15000 * 10)