The Button Box is a custom decorating and design store. The company prepares custom draperies to order for customers. The following transactions were incurred to support job number 757, custom drapes and furniture coverings for a luxury home:
(a) Purchased $4,000 of materials on account.
(b) Issued $200 supplies from the materials inventory.
(c) Paid for the materials purchased in transaction (a)
(d) Issued $3,200 of materials to the production department.
(e) Incurred hourly labor to sew curtains of $1,500 and supervisory labor of $1,000. Supervisors are assigned to as many as 10 jobs at once.
(f) Paid $2,000 for utilities and other miscellaneous items for the manufacturing plant.
(g) Overhead is applied at 200% of direct labor cost.
(h) Recorded depreciation on factory equipment of $1,000 and Sales director's company car of $500. Required: Prepare journal entries to record these transactions.

Question

Quizplus · Accepted Answer

The Answer of The Button Box is a custom decorating and design store. The company prepares custom draperies to order for customers. The following transactions were incurred to support job number 757, custom drapes and furniture coverings for a luxury home:
(a) Purchased $4,000 of materials on account.
(b) Issued $200 supplies from the materials inventory.
(c) Paid for the materials purchased in transaction (a)
(d) Issued $3,200 of materials to the production department.
(e) Incurred hourly labor to sew curtains of $1,500 and supervisory labor of $1,000. Supervisors are assigned to as many as 10 jobs at once.
(f) Paid $2,000 for utilities and other miscellaneous items for the manufacturing plant.
(g) Overhead is applied at 200% of direct labor cost.
(h) Recorded depreciation on factory equipment of $1,000 and Sales director's company car of $500. Required: Prepare journal entries to record these transactions.

The Button Box Is a Custom Decorating and Design Store