Chapter 2 Example

Chapter 2 Example - DLH are 750. (Need to add the estimate...

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Macon makes dog houses and the following transactions relate to his operations for the  month of February.  Prepare the journal entries and keep track of the T-accounts. 1. Purchased lumber for the $1,000 2. Purchased WD-40 for the hinges of the dog houses $500 3. Production calls and asks for $800 worth of lumber 4. Production asks for $100 worth of WD-40 5. Time cards are collected and direct labor (DL) is $600 (60 hours) 6. Supervisor salaries for the month are $3,000   7. MOH is applied.  **Estimated yearly MOH is $75,000 and estimated yearly 
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Unformatted text preview: DLH are 750. (Need to add the estimate of MOH to the WIP account to get the costs attached to the product.) 8. Received the water bill, electric bill and insurance bill for the factory totaling $1,500. 9. Recorded plant equipment depreciation of $800. 10. Finished the units and sent them to the sales floor. (Transfer at full cost from WIP.) 11. Sold half of the units on account for $8,000. Chapter 2 Example...
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This note was uploaded on 07/02/2011 for the course ACCT 226 taught by Professor Smith during the Spring '10 term at South Carolina.

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