Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. raw materials purchased on account, $90,000.b. direct materials used in production, $36,500. indirect materials used in production, $19,200.c. paid cash for factory payroll, $50,000. of this total, $38,000 is for direct labor and $12,000 is for indirect labor. d. paid cash for other actual overhead costs, $11,475.e. applied overhead at the rate of 125% of direct labor cost. f. transferred cost of jobs completed to finished goods, $56,800.g. sold jobs on account for $82,000. the jobs had a cost of $56,800.

Explanation:

The journal entries are shown below:

a. Raw materials inventory A/c Dr $90,000

         To Accounts payable A/c   $90,000

(Being raw material is purchased on credit)

b. Work in progress inventory A/c Dr $36,500

          To Raw materials inventory A/c $36,500

(Being used in production recorded)

Factory overhead A/c Dr $19,200

         To Raw materials inventory A/c $19,200

(Being indirect material used is recorded)

c. Work in progress inventory A/c Dr $38,000

   Factory overhead A/c Dr $12,000

                   To cash A/c $50,000

(Being factory payroll is paid in cash)

d. Factory overhead A/c Dr $11,475

                    To Cash A/c $11,475

(Being other actual overhead is paid for cash)

e. Work in progress inventory A/c Dr $47,500     ($38,000 × 125%)

             To Factory overhead A/c $47,500

(Being applied overhead is recorded)

f. Finished goods inventory A/c Dr $56,800

       To Work in progress inventory A/c  $56,800

(Being transferred goods are recorded)

g. Accounts receivable A/c Dr $82,000

             To Sales A/c $82,000

(Being jobs are sold on account)

Cost of goods sold A/c Dr $56,800

          To  Finished goods inventory A/c $56,800

(Being the job cost is recorded)

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

answer; standing committee;