Reference no: EM132688890

ABC Company had the following inventories on May 1, 2019(amounts in SR)

Raw Material 30,000
Finished Goods 40,000
WIP - Material 20,000
WIP - Labor 20,000
WIP - Manufacturing overhead 15,000

During the month, the cost of material purchased was 130,000 direct labor cost incurred was 140,000 and factory overhead applicable to production was 70,000, on May 31, inventories were:

Raw Material 40,000
Finished Goods 50,000
WIP - Material 15,000
WIP - Labor 25,000
WIP Manufacturing overhead 10,000

Required:

Problem 1: Prepare Journal entries on May 31, to show the flow of cost through the proper summary T accounts. Assume that sales values were 500,000 on credit.