E20-30.png - Blue Ridge Mountain Manufacturing had the...

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Unformatted text preview: Blue Ridge Mountain Manufacturing had the following transactions related to manufacturing overhead for the year: 1. Incurred manufacturing overhead costs a. $5,000 in indirect materials b. $12,500 in indirect labor (credit Wages Payable) 0. $30,600 in machinery depreciation d. $20,400 in other indirect costs that were paid in cash 2. Allocated manufacturing overhead (use a compound entry) a. $30,000 to the Mixing Department b. $37,000 to the Packaging Department Requirement 1. Prepare the journal entries for Blue Ridge Mountain Manufacturing. (Record debits first, 1a. $5,000 in indirect materials Date I Accounts Debit | Credit 1a. I Manufacturing Overhead 5,0001 ‘ V I Raw Materials Inventory I 5,000 1b. $12,500 in indirect labor (credit Wages Payable) Date Accounts Debit Credit 1b. Manufacturing Overhead 12,500 ‘ V Wages Payable 12,500 11:. $30,600 in machinery depreciation Date Accounts Debit Credit 19 Manufacturing Overhead 30,600 Accumulated Depreciation—Machinery 30,600V 1d. $20,400 in other indirect costs that were paid in cash Date Accounts Debit Credit 1d. Manufacturing Overhead 20,400 V Cash 20,400 2a and 2b. Allocated manufacturing overhead (use a compound entry): $ 30,000 to the Mixing Department and $37,000 to the Packaging Department. Date Accounts Debit Credit 23“ 2b Work-in-Process Inventory—Mixing 30,000 Work-in-Process Inventory—Packaging 37,000‘ Manufacturing Overhead 67,000V Requirement 2. Determine the amount of overallocated or underallocated manufacturing overhead by posting the transactions to the Manufacturing Overhead account. Assume the balance in Manufacturing Overhead on January 1 is $0. Prepare the adjusting entry. Begin by posting the transactions to the Manufacturing Overhead (MOH) account to determine the amount of overallocated or underallocated manufacturing overhead. Post the entries using the appropriate posting references. Denote the ending balance as "Bal." Manufacturing Overhead Date Accounts Debit Credit Beg. Bal. 0 1a. Manufacturing Overhead 5,000 1a. Indirect materials V 5,000 Raw Materials Inventory 5,000 1b. Indirect labor V 12,5001 1b. Manufacturing Overhead 12,500 1c. Depreciation V 30,6001 Wages Payable 12,500 1d. Other MOH V 20,400 (57,000V 2a., 2b. MOH allocated ‘ 10. Manufacturing Overhead 30,600 Bal. ‘ 1,500 Accumulated Depreciation 30,600 Prepare the adjusting entry. (Record debits first, then credits. Exclude explanations from anyjournal entr 1d. Manufacturing Overhead 20,400 Cash 20,400 Date Accounts Debit Credit 2a., 2b Work-in-Process Inventory—Mixing 30,000 Dec. 31 Cost Of Goods SOId ‘ 1'500 ‘ Work-in-Process Inventory—Packaging 37,000 Manufacturing Overhead 1'500 Manufacturing Overhead 67,000 ...
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  • Spring '11
  • CatherineDuran

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