Prepare summary journal entries to record the following transactions for a company in its first month of operations. Raw materials purchased on account, $108,000. Direct materials used in production, $44,000. Indirect materials used in production, $19,800. Paid cash for factory payroll, $70,000. Of this total, $46,000 is for direct labor and $24,000 is for indirect labor. Paid cash for other actual overhead costs, $8,750. Applied overhead at the rate of 120% of direct labor cost. Transferred cost of jobs completed to finished goods, $86,000. Sold jobs on account for $123,000. The jobs had a cost of $86,000.

Journal Entries

Raw Materials $108,000  (debit)

Accounts Payable $108,000 (credit)

Being purchase of Raw Materials on Account

Work In Process ; Direct  Material Cost $44,000 (debit)

Work In Process ; Indirect Material Cost $19,800 (debit)

Raw Materials $63,800 (credit)

Being Raw Materials requisitioned for Production

Work In Process ; Direct Wages and Salaries $46,000 (debit)

Work In Process ; Indirect Wages and Salaries $24,000 (debit)

Cash $70,000 (credit)

Being Wages and Salaries Paid in Cash

Overheads $8,750 (debit)

Cash $8,750 (credit)

Being Cash paid for Overheads

Work In Process $55,200 (debit)

Overheads $55,200 (credit)

Being Overheads Applied to Work In Process at 120% of direct labor cost

Finished Goods $86,000 (debit)

Work In Process $86,000 (credit)

Being Goods transferred to Finished Goods

Trade Receivable $123,000 (debit)

Revenue $123,000 (credit)

Being Sale of Jobs on Account

Cost of Sales $86,000 (debit)

Finished Goods $86,000 (credit)

Being Cost of Jobs Sold

Explanation:

Costs incurred for Manufacturing are accumulated In the Work In Process Account.

This account is de-recognized as the goods are transferred to Finished Goods.

The Finished Goods Inventory Account is then de-recognised as the Jobs are sold to the Customers.

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.