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Quark Spy Equipment manufactures espionage equipment. Quark usesa job-order costing system and applies overhead to jobs on thebasis of direct labor-hours. For the current year, Quark estimatedthat it

Quark Spy Equipment manufactures espionage equipment. Quark usesa job-order costing system and applies overhead to jobs on thebasis of direct labor-hours. For the current year, Quark estimatedthat it would work 176,000 direct labor-hours and incur $52,448,000of manufacturing overhead cost. The following summarizedinformation relates to January of the current year. The rawmaterials purchased include both direct and indirect materials.

     
Rawmaterials purchased on account $ 3,702,400
Direct materialsrequisitioned into production $ 3,408,800
Indirect materialsrequisitioned into production $ 258,500
Direct labor cost(20,600 hours @ $36 per hour) $ 741,600
Indirect labor cost(24,300 hours @ $24 per hour) $ 583,200
Depreciation on thefactory building $ 680,800
Depreciation on thefactory equipment $ 3,183,100
Utilities for thefactory $ 286,300
Cost of jobsfinished $ 8,972,900
Cost of jobs sold $ 8,563,300
Sales (all onaccount) $ 12,846,700
 
Required:

Prepare journal entries to record Quark's transactions for themonth of January. Do not close out the manufacturing overheadaccount. (Omit $ sign in your response.)

  GeneralJournal Debit Credit
a. (Click to select)RawmaterialsAccounts payableWork in processManufacturingoverheadSalaries and wages payableAccumulated depreciation,buildingAccumulated depreciation, equipment    
  (Click to select)Raw materialsAccounts payableWork inprocessManufacturing overheadSalaries and wages payableFinishedgoodsCost of goods sold    
       
b. (Click to select)RawmaterialsAccounts payableWork in processManufacturingoverheadSalaries and wages payableFinished goodsCost of goodssold    
  (Click to select)Raw materialsAccounts payableWork inprocessManufacturing overheadSalaries and wages payableFinishedgoodsCost of goods sold    
       
c. (Click to select)RawmaterialsAccounts payableWork in processManufacturingoverheadSalaries and wages payableFinished goodsCost of goodssold    
  (Click to select)Raw materialsAccounts payableWork inprocessManufacturing overheadSalaries and wages payableFinishedgoodsCost of goods sold    
       
d. (Click to select)RawmaterialsAccounts payableWork in processManufacturingoverheadSalaries and wages payableFinished goodsCost of goodssold    
  (Click to select)Raw materialsAccounts payableWork inprocessManufacturing overheadSalaries and wages payableFinishedgoodsCost of goods sold    
       
e. (Click to select)AccountsreceivableCost of goods soldFinished goodsSalaries and wagespayableManufacturing overheadWork in processAccounts payable    
  (Click to select)Raw materialsAccounts payableWork inprocessManufacturing overheadSalaries and wages payableAccountsreceivableFinished goods    
       
f. (Click to select)RawmaterialsAccounts payableWork in processManufacturingoverheadSalaries and wages payableCost of goods soldAccountsreceivable    
  (Click to select)Raw materialsAccounts payableSalariesand wages payableWork in processManufacturing overheadFinishedgoodsAccounts receivable    
       
g. (Click to select)RawmaterialsAccounts payableWork in processManufacturingoverheadAccumulated depreciation, buildingAccumulated depreciation,equipmentCost of goods sold    
  (Click to select)Finished goodsAccumulateddepreciation, buildingAccumulated depreciation,equipmentManufacturing overheadUtilities payable (or cash)Salariesand wages payableWork in process    
  (Click to select)Work in processManufacturingoverheadFinished goodsAccumulated depreciation, buildingUtilitiespayable (or cash)Salaries and wages payableAccumulateddepreciation, equipment    
  (Click to select)Accumulated depreciation,buildingUtilities payable (or cash)Finished goodsManufacturingoverheadWork in processSalaries and wages payableAccumulateddepreciation, equipment    
       
h. (Click to select)RawmaterialsAccounts payableWork in processFinished goodsAccumulateddepreciation, buildingAccumulated depreciation, equipmentAccountsreceivable    
  (Click to select)Raw materialsAccounts payableWork inprocessManufacturing overheadSalaries and wages payableFinishedgoodsCost of goods sold    
       
i. (Click to select)RawmaterialsAccounts payableWork in processFinished goodsManufacturingoverheadSalaries and wages payableCost of goods sold    
  (Click to select)Raw materialsAccounts payableFinishedgoodsManufacturing overheadSalaries and wages payableAccumulateddepreciation, buildingAccumulated depreciation, equipment    
       
j. (Click to select)AccountsreceivableAccumulated depreciation, buildingAccumulateddepreciation, equipmentCost of goods soldFinished goodsSalaries andwages payableManufacturing overhead    
  (Click to select)Raw materialsAccounts payableSalesWorkin processManufacturing overheadAccounts receivableCost of goodssold

Aug 16 2021 View more View Less

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