Question

Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods

Answer 1

See explanation

Step-by-step explanation:

Journal entries:

No. Date Account Titles and Explanation Debit Credit

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a. 31-May Raw materials inventory.

Accounts payable

(To record purchase of raw materials)

b. 31-May Work in process inventory

Raw materials inventory

(To record direct materials usage)

c. 31-May Manufacturing overheads

Raw materials inventory

(To record indirect materials usage)

d. 31-May Work in process inventory

Factory payroll

(To record direct labor cost incurred)

e. 31-May Manufacturing overheads

Factory payroll

(To record indirect labor cost incurred)

f. 31-May Factory payroll

Cash

(To record payment of factory payroll)

g. 31-May Manufacturing overheads

Accounts payable

(To record other overhead costs)

h. 31-May Work in process inventory

Manufacturing overheads

(To record overhead applied)

i. 31-May Finished goods inventory

Work in process inventory

(To record cost of goods transferred)

j. 31-May Accounts receivable

Sales revenue

(To record sales revenue)

31-May Cost of goods sold

Finished goods inventory

(To record cost of goods sold)

Hope this helps!