Question:
Journal entries for a manufacturer
On December 1, Lake George Production Company had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow:
|
Materials
|
$6,000
|
|
Labor
|
2,000
|
|
Overhead
|
2,000
|
During December the following transactions occurred:
a. Purchased materials costing $50,000 on account.
b. Placed direct materials costing $49,000 into production.
c. Incurred production wages totaling $50,500
d. Incurred overhead costs for December:
|
Depreciation
|
$20,000
|
|
Utilities
|
28,000 (Cash payment)
|
|
Salaries
|
11,000 (Cash payment)
|
|
Supplies
|
2,000 (From inventory)
|
e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost.
f. Completed and transferred 10,000 units to Finished Goods.
Required:
Prepare the journal entries to record the above information for the month of December.