Question

Starr Company reports the following information for August. Raw materials purchased on account $ 81,800 Direct materials used in production $ 53,600 Factory wages earned (direct labor) $ 19,550 Overhead rate 135 % of direct labor cost Prepare journal entries to record the following events. Raw materials purchased. Direct materials used in production. Direct labor used in production. Applied overhead.

Answer 1

Entry: Dr Raw material 81800

Cr Accounts payable 81800

( To record raw material purchased on account)

Entry: Dr Work in process 53600

Cr Raw material 53600

( To record material used in production)

Entry: Dr Work in process ( 19550 *135%= 26392) 26392

Cr Applied factory overhead 26392

(To record applied overhead )