B-19.06 Problem

B-19.06 Problem - production Aug 8 20X5 Incurred direct...

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B-19.06 Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete the entries, determine the amount to include in raw materials, work in process, and finished goods. Aug. 4, 20X5 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4,000, on account. Aug. 8, 20X5 Transferred 60% of the raw materials purchased on August 4 into
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Unformatted text preview: production. Aug. 8, 20X5 Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor cost. Aug. 9, 20X5 Transferred completed awnings with total assigned costs of $4,400 to finished goods. Aug. 10, 20X5 Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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