Kapoor Company uses job-order costing. During January, the f

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Kapoor Company uses job-order costing. During January, the following data were reported:

Materials purchased on account: direct materials, $98,500; indirect materials, $14,800.
Materials issued: direct materials, $82,500; indirect materials, $8,800.
Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.
Other manufacturing costs incurred (all payables), $46,200.
Overhead is applied on the basis of 110 percent of direct labor cost.
Work finished and transferred to Finished Goods Inventory cost $230,000.
Finished goods costing $215,000 were sold on account for 140 percent of cost.
Any over- or underapplied overhead is closed to Cost of Goods Sold.

Required: Prepare journal entries to record these transactions.

pur-new-sol

Journal Entries:
S. NO.	Account Titles and Explanation		Debit	Credit
a	Raw Material Inventory A/c ($98,500+$14,800)	Dr	113300
	Accounts Payable A/c			113300
	(Being Raw Material Purchased)

b	Work in Process Inventory A/c	Dr	82500
	Manufacturing Overhead A/c	Dr	8800
	To Raw Material Inventory A/c			91300
	(Being Raw material issued as direct & Indirect material)

c	Work In Process Inventory A/c	Dr	67000
	Manufacturing Overhead A/c	Dr	18750
	To wages Payable A/c			85750
	(Being Wages charged to Work in Process & Overheads Account)

d	Manufacturing Overhead A/c	Dr	46200
	To Accounts Payable A/c			46200
	(Being Manufacturing Overheads Incurred for Production)

e	Work in Process Inventory A/c ($67,000*110%)	Dr	73700
	To Manufacturing Overhead A/c			73700
	(Being Manufacturing Overhead applied during the month)

f	Finished Goods Inventory A/c	Dr	230000
	To Work in Process Inventory A/c			230000
	(Being Transferring completed goods to next process)

g(i)	Cost Of Goods Sold A/c	Dr	215000
	To Finished Goods Inventory A/c			215000
	(Being COGS transferred from finished goods)

g(ii)	Accounts Receivable A/c ($215,000*140%)	Dr	301000
	To Sales Revenue			301000
	(Being goods sold on account)

h	Cost Of Goods Sold A/c (8800+18750+46200-73700)	Dr	50
	To Manufacturing Overhead A/c			50
	(Being Under-applied overheads)

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