Bjerg Corporation - $72,000 Factory overheads a/c...

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Journal Entries (for Bjerg Corporation) Date/S.No. Account Titles/Description Debit Credit 1) Raw materials a/c Dr $46,300 Accounts payable a/c $46,300 (Being the purchase of raw materials on account) 2) Work-in-progress inventory a/c Dr $29,200 Factory overheads a/c Dr $6,800 Raw materials inventory a/c $36,000 (being the requisition of direct and indirect materials by the factory) 3) Factory labor a/c Dr $53,900 Wages payable a/c $49,000 Payroll taxes payable a/c $4,900 (being the record for payroll) 4) Work-in-progress inventory a/c Dr $48,000 Factory overheads a/c Dr $5,900 Factory labor a/c $53,900 (being the direct and indirect labor expenses for the period) 5) Factory overheads a/c Dr $80,500 Accounts Payable a/c $80,500 (being the incurrence of factory overheads on account) 6) Work-in-progress inventory a/c Dr
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Unformatted text preview: $72,000 Factory overheads a/c $72,000 (Being the application of manufacturing overheads at the rate of 150% on direct labor cost = $48,000 x 150%) 7) Finished goods inventory a/c Dr $88,000 Work-in-progress inventory a/c $88,000 (Being the transfer of completed goods to finished goods inventory) 8) Accounts Receivables a/c Dr $103,000 Sales revenue a/c $103,000 (being the sale made on account) 9) Cost of goods sold a/c Dr $75,000 Finished goods inventory a/c $75,000 (being the cost of the goods sold recorded) 10) Cost of goods sold a/c Dr $21,200 Factory overheads a/c $21,200 (Being the under-applied overhead debited to cost of goods sold) Factory overheads applied = $72,000 Actual overheads incurred = $93,200 Underapplied overheads= $21,200...
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