Ask Question
9 February, 08:18

PB13.

LO 4.7The following events occurred during March for Ajax Company. Prepare a journal entry for each transaction.

Materials were purchased on account for $5,429.

Materials were requisitioned to begin work on Job C15 in the amount of $2,500.

Direct labor expense for Job C15 was $4,250.

Actual overhead was incurred on account for $5,385.

Factory overhead was charged to Job C15 at the rate of 200% direct labor.

Job C15 was transferred to finished goods at $15,250.

Job C15 was sold on account for $28,000.

+3
Answers (1)
  1. 9 February, 11:23
    0
    Journal entry for each transaction is given below.

    Materials were purchased on account for $5,429.

    Debit Material Account $5,429

    Credit Payable $5,429

    Materials were requisitioned to begin work on Job C15 in the amount of $2,500.

    Debit WIP JOB C15 Account $2,500

    Credit Material Account $2,500

    Direct labor expense for Job C15 was $4,250.

    Debit WIP JOB C15 Account $4,250

    Credit Payroll Account $4,250

    Actual overhead was incurred on account for $5,385.

    Debit Factory Overhead Control Account $5,385

    Credit Expense payable/cash $5,385

    Factory overhead was charged to Job C15 at the rate of 200% direct labor.

    Debit WIP JOB C15 Account $8,500

    Credit Applied Factory overhead Account $8,500

    Job C15 was transferred to finished goods at $15,250.

    Debit Finished Good Account $15,250

    Credit WIP JOB C15 Account $15,250

    Job C15 was sold on account for $28,000

    (2 entries will be passed at this stage)

    Debit Cost of Good Sold $15,250

    Credit Finished Good Account $15,250

    Debit Receivable/Cash Account $28,000

    Credit Sales $28,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “PB13. LO 4.7The following events occurred during March for Ajax Company. Prepare a journal entry for each transaction. Materials were ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers