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ID: 2330851 • Letter: N
Question
ngagenow.com/irn/takeAssignment/takeAssignmentMain.dotinprogress true eBook Calculator Entries for lactory costs and jobs completed Chart of Accounts Journal to them ween recorded on the related cost sheets Oid Sichool Publshing Inc began printing operatons on January 1. Jobs 301 and 302 wese compileted during the month, and all costs applicabile Jobs 303 and 304 are stein process at the end of the month, and all applicable costs except tactory overhead have been recorded on the selated cost sheets In addion to the materials charged deectly to the jobs, $7,400 of Indirect materials and $12,000 of indirect labor were used during the month. The cost sheets for the tour jobs entering production during the month are as follows, in summary Sorm and labor Job 302 Job 301 Direct materials $9,000 Direct materials $21,100 Direct labor Factory overhead 5,467 Factory overhead 11,92 Total 7,700 Direct labor 16,800 $22,157Total $49,828 Job 303 Direct materials $25,200 Direct materials $14,800 Direct labor 16,100 Factory overheadFactory overhead -_ Job 304 Deect labor 13,900 Required Journalize the Jan 31 ummary entries to recond each of the following operations for January (one entry for each operadon) Reer to the Chert of Accounts for exact wording of account titles a Direct and indirect materials used b. Drect and indiroct labor used Check My WorkExplanation / Answer
SOLUTION
Explanation -
1. Work in process (Materials) = Direct materialsJob 301 + Direct materialsJob 302+ Direct materialsJob 303+Direct materialsJob 304
= $9,000 + $21,100 + $25,200 + $14,800 = $70,100
2. Work in process (Labor) = Direct LaborJob 301 + Direct LaborJob 302 + Direct LaborJob 303 + Direct LaborJob 304
= $7,700 + $16,800 + $16,100 + $13,900 = $54,500
3. Predetermined overhead rate = Factory overhead incurredJob1 / Direct labor Job 1
= $5,467 / $7,700 = 71%
Factory overheads applied = Direct labor used * Predetermined overhead rate
= $54,500 * 71% = $38,695
4. Finished goods = Total costJob 301 + Total costJob 302
= $22,167 + $49,828 = $71,995
S.No. Accounts titles and Explanation Debit ($) Credit ($) 1. Work in progress 70,100 Factory overheads 7,400 Material 77,500 (To record direct and indirect materails used) 2. Work in process 54,500 Factory overheads 12,000 Wages payable 66,500 (To record direct and indirect labor used) 3. Work in process 38,695 Factory overheads 38,695 (To record factory overheads applied on all jobs) 4. Finished goods 71,995 Work in process 71,995 (To record the completion of Job 301 and 302)Related Questions
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