This is posting the journal entries to T-accounts for all of the inventories, Cost of goods, the manufacturing over head control account, and the manufacturing over head allocated account. I need help recording the direct materials used.
Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014:
#8 (Click the icon to view the data.)
Creation Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.60 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials
or the entry.
Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account.
Accounts Payable Control
Purchases of direct materials (net) on credit
Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.
Direct manufacturing labor cost
direct material records
Depreciation, factory equipment
Depreciation, office equipment
materials requisition records
Maintenance, factory equipment
Miscellaneous factory overhead
Rent, factory building
Record the direct materials used
January 1, 2014
December 31, 2014
Work in process
Choose from any list or enter any number in the input fields and then click Check Answer.