Answer to Question #227938 in Accounting for mafi

Question

abebe furniture is a furniture mfg firm that uses job order costing.the company's inventory balance on Jan 1,the beginning of its fiscal year as follows

raw material br40000

work in process 30000

finished goods 60000

a.raw materials were purchased on account for br 800000

b.raw materials were transferred in to production br 764000

(Br 720000DM and 40000 I.M)

c.the following cost were incurred for employee services DL br 150000

indirect labor 220000

d. factory utility cost were incurred in the factory br 86000

e.MOH was applied to production 960000

f.goods costing br 1800000 were completed and transferred to warehouse

g.goods were sold on account to customers during the year at selling price of br 3000000.the goods cost br 1748000 to manufacture according to there job cost sheets .

instructions:-prepare journal entry to record preceding transactionS

Answer 1

a. Debit account raw materials and materials credit account settlements with suppliers - 800000

b. Debit account main production credit account raw materials and materials - 764000

с. Debit account main production credit account settlements with personnel direct expenses - 150000

Debit account main production credit account settlements with personnel indirect expenses - 220000

d. Debit account expenses of auxiliary production credit services of third-party organizations for auxiliary production - 86000

Debit account main production credit account expenses of auxiliary production - 86000

e. Debit account main production expenses credit account overhead expenses - 960000

f. Debit account finished products credit account of the main production - 1800000

g. Debit account settlements with customers credit sales account - 3000000

Debit sales account credit account finished products - 1748000