Preparing journal entries-outputs Hartley Company has a production process that involves three processes. Units move through the processes in this order. cutting, stamping, and then polishing. The company had the following transactions in November: 1. Cost of units completed in the Cutting Department, $17,000 2. Cost of units completed in the Stamping Department, $30,000 3. Cost of units completed in the Polishing Department, $35,000 4. Sales on account, $50,000 5. Cost of goods sold is 80% of sales Prepare the journal entries for Hartley Company.

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Business

Honey Locks

16 April, 18:12

Preparing journal entries-outputs Hartley Company has a production process that involves three processes. Units move through the processes in this order. cutting, stamping, and then polishing. The company had the following transactions in November: 1. Cost of units completed in the Cutting Department, $17,000 2. Cost of units completed in the Stamping Department, $30,000 3. Cost of units completed in the Polishing Department, $35,000 4. Sales on account, $50,000 5. Cost of goods sold is 80% of sales Prepare the journal entries for Hartley Company.

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Karter Dyer · Answer 1

(It is assume that completed unit have been transferred to next department)

The jounal entries for each transaction is given below.

Cost of units completed in the Cutting Department, $17,000

Debit WIP stamping Dept $ 17,000

Credit WIP cutting Dept $ 17,000

Cost of units completed in the Stamping Department, $30,000

Debit WIP polishing Dept $ 30,000

Credit WIP stamping Dept $ 30,000

Cost of units completed in the Polishing Department, $35,000

Debit Finished good $ 35,000

Credit WIP polishing Dept $ 35,000

Sales on account, $50,000

Debit GOGS $ 40,000

Credit Finished good $ 40,000

Debit Receivable Account $ 50,000

Credit Sales $ 50,000