Forrest Co. makes wooden tables.

Forrest Co. makes wooden tables.

(a)	Purchased $20,100 of raw materials on credit.
(b)	Issued $17,400 of direct materials into production.
(c)	Applied $48,000 of conversion cost.
(d)	Paid in full the raw materials purchased on credit.
(e)	Completed tables costing $54,450.
(f)	Recorded actual conversion costs of $42,600. (Credited to Miscellaneous account)
(g)	Sold tables for $93,700 that cost $49,800 to produce.
(h)	Disposed of any over- or underapplied conversion cost.

Required :

Prepare the journal entries to record each of the above transactions (Omit the "$" sign in your response):

Event	General Journal	Debit	Credit
(a)	Raw material inventory	20,100
	Accounts payable		20,100
(b)	Work in process inventory	17,400
	Raw material inventory		17,400
(c)	Work in process inventory	48,000
	Conversion cost		48,000
(d)	Accounts payable	20,100
	Cash		20,100
(e)	Finished goods inventory	54,450
	Work in process inventory		54,450
(f)	Conversion cost	42,600
	Miscellaneous accounts		42,600
(g)	Cash or Accounts receivable	93,700
	Sales revenue		93,700
	Cost of goods sold	49,800
	Finished goods inventory		49,800
(h)	Conversion cost	5,400
	Cost of goods sold		5,400

 
 Explanation:

(h)	Conversion cost = ($48,000 − $42,600) = 5,400