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A manufacturer purchases 10,000$ of raw material. During the manufacturing of the products, 40,000$ of labor and 60,000$ of overhead cost are incurred. After completion, the products are stored in the warehouse, and the three weeks later one-half of the finished products are sold for 65,000$. Show the following lowing ebtries in the accounting equation:
when the row material purchased?
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Question & Answer: A manufacturer purchases 10,000$ of raw material. During the manufacturing of the products, 40,000$ of labor and 60,000$ o…..
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when the labor and overhead expenses are in-curred?
When the finished product is sold?
Expert Answer
| Please find below the answer and please give thumbs up | ||
| Statementshowing Computations | ||
| Paticulars | Dr | Cr |
| when the row material purchased | ||
| Raw Materials Inventory Dr | 10,000.00 | |
| to Accounts Payable | 10,000.00 | |
| when the labor and overhead expenses are in-curred | ||
| Factory Payroll Dr | 40,000.00 | |
| Factory Overhead Dr | 60,000.00 | |
| TO Cash | 100,000.00 | |
| When the finished product is sold | ||
| Accounts receivable Dr | 65,000.00 | |
| To Sales | 65,000.00 | |
| Cost of Goods soldDr | 55,000.00 | |
| To Finished goods | 55,000.00 | |
| (10000 + 40000+60000)/2 | ||
