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3 July, 09:08

Hardy Company manufactures a single product by a continuous process, involving two production departments. The records indicate that $140,000 of direct materials were issued to and $200,000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $25 per machine hour; machine hours were 5,000 in Department 1. Work in process in the department at the beginning of the period totaled $35,000; and work in process at the end of the period was $25,000. Prepare entries to record

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  1. 3 July, 12:32
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    In this question, we record the entries of raw material inventory, factory labor, and the manufacturing overhead

    The journal entries are shown below:

    1. Work in Process - Dept. 1 A/c Dr $140,000

    To Raw Materials Inventory $140,000

    (Being the raw material is issued)

    2. Work in Process - Dept. 1 A/c Dr $200,000

    To Direct Labor A/c $200,000

    (Being the direct labor is recorded)

    3. Work in Process - Dept. 1 A/c Dr $125,000 (5,000 * $25)

    To Manufacturing overhead A/c $125,000
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