You have been given the assignment to read Beer School: Bottling Success at The Brooklyn Brewery. Upon completion of reading this informative book dealing with this real life rags to riches entrepreneurial….
Make journal entries for all transactions that occurred in the month of June, and post them to t-accounts.
Barry, Inc., applies manufacturing overhead to products at a rate of $60 per machine hour. In June, Barry only worked on one job, which it began June 1, purchasing $400,000 in materials ($75,000 of which were indirect) on account for use on the job. As it turned out, only $300,000 in direct materials were needed for the job (as well as all indirect materials purchased), which used 10,000 machine hours. Barry paid labor $100,000 cash for work on the job, which was completed on June 30. The job did not ship to the customer until a week later. During the month of June, Barry paid $100,000 cash for utilities (90% for the factory and 10% for the office), paid $50,000 cash for factory rent and $5,000 cash for office rent, paid $120,000 for miscellaneous factory overhead and $40,000 for miscellaneous office overhead on account, and recognized $75,000 in factory equipment depreciation and $30,000 in office equipment depreciation. There were no defects in manufacturing on the job. Make journal entries for all transactions that occurred in the month of June, and post them to t-accounts. Overhead is not closed until the end of the year.