Beginning Inventories are: RM $1,000; WIP $2,500; FG $5,000 What are the journal entries for these inventory transactions? a. Purchased, on credit 10,000 lbs. of flour mix at $.50 per lb. b. Used 8,000 lbs. of flour in production c. A physical inventory of flour reveals an unaccountable shortage of 200 lbs. d. Added $4,000 of direct labor and applied $2,000 of manufacturing overhead to production. e. Completed production of $12,000 of finished goods. f. What are the balances in the Raw Material, WIP and Finished Goods?

                  Raw Materials

Opening Inventory                  $1,000

Purchases (10,000*0.5)            5,000

                                                  6,000

Transfer to production(WIP)     (4,000)

(8000*0.5)  

unaccountable shortage(200*0.5) (100)

Closing Balance of Inventory      1,900

                                WIP

opening Inventory                         $2,500

Raw material                                   4,000

Conversion cost:

Direct labor                        4,000

Manufacturing overhead  2,000      6,000

                                                         12,500

Transfer to finished goods           ( 12,000)

Closing Balance of Inventory              500

                             Finished Goods

Opening Invetory                           $5,000

Transfer from WIP                           12,000

Closing Balance of Invetory           17,000

Explanation:

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

15 1/2 years old in california