Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Cost Acounting question

Bottom of Page

1 to 3 of 3

  1.  
    • CommentAuthormurph1031
    • CommentTimeSep 8th 2009
     
    I'm in my third semester towards my Associate degree, and I'm taking a cost accounting class. I have a question on one of my problems.
    we had to make a flexible budget at various levels of capacity, and calculate the predetermined variable and fixed overhead rates. I have all this done. Then we need to prepare journal entries for the incurrence of ACTUAL overhead costs. Heres an example of one of the costs, and the journal entry I think is correct. Am I correct?

    Indirect labor $1.00 per unit produced
    Supervisors salaries $72,000
    Units produced 70,000

    Heres my journal entry

    Variable overhead $70,000
    Fixed Overhead $72,000
    Wages payable $142,000

    Heres where I stuck. How do I get to the journal entry to record the payment of the wages?

    Thanks for any help.
    • CommentAuthorzaqperez
    • CommentTimeSep 9th 2009
     
    Your journal entry appears to be corect and unless I am missing something, the entry to record the payment of wages should look like this (generally speaking):

    Dr - Wages payable $142,000
    Cr - Cash $142,000
    Thankful People: murph1031
  3.  
    Hi

    Your general entree will show in :

    Dr - Wages payable $142,000
    Cr - Cash $142,000

    http://www.avicennaaccounting.com

1 to 3 of 3

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,402 Visitor Testimonials



What's on AccountingCoach.com?