90.2K

Verified Solution

Link Copied!

Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October Direct materials used Direct labor used 20% in Shredding: sex in Bagging Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $234,000 $157,000 165% $206,000 $588,000 The company's revenue for the month totaled $440,000 from credit sales, and its cost of goods sold for the month is $250,000 Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage. (2) direct labor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, (6) credit sales, and (7) cost of goods sold. Journal entry worksheet Record the transfer of goods from Shredding to Bagging. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Record entry Clear entry View general journal Record the sale of goods on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 6 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 Record the cost of goods sold. Note: Enter debits before credits: General Journal Debit Credit Transaction 7 Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert

See Answer