Reference no: EM131292161
Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations: 1. Purchased materials costing $800,000. 2. Used direct materials in production costing $485,000. 3. Applied direct labor costs of $500,000 to various jobs. 4. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) 5. Incurred actual manufacturing overhead costs of $245,000 (credit "Various Accounts"). 6. Transferred completed jobs costing $745,000 to finished goods. 7. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000. 8. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30. a. Prepare a journal entry for each of the eight transactions listed above
Journal Entry consists of:
Record materials purchased on account.
Record materials used on jobs.
Record labor used on jobs.
Record the entry to apply overhead to jobs based on direct labor.
Record actual overhead costs incurred.
Record the entry for completion and transfer of various jobs to finished goods.
Record the sale of various jobs on account.
Record the cost of goods sold on the sale of various jobs.
Record the entry to close the balance in the manufacturing overhead account directly to Cost of Goods Sold.
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