b. Cost of goods H c. Direct labor incurred Lo3, 4 P3-6A. Job Cost Journal Entri
ID: 2341897 • Letter: B
Question
b. Cost of goods H c. Direct labor incurred Lo3, 4 P3-6A. Job Cost Journal Entries and T Accounts Summarized data for the first month 's Dobson Welding Foundry during 2016 are presented below A job order costing system is o 1. Materials purchased on account, $58,000. 2 Amounts of materials requisitioned and foundry labor used: Foundry Labor $2,600 5,000 2,400 4,600 2,800 1,200 Materials Job S 4,400 7,000 3,200 12,000 4,800 1,400 6,200 3,400 3. Foundry overhead is applied at the rate of 200% of direct labor costs. 4. Miscellaneous foundry overhead incurred: Prepaid foundry insurance written off ...1,480 2,360 .5,280 7,440 . . .. .. Property taxes on foundry building accrued....... .. . Foundry utilities payable accrued . . . . . .. . 5. Ending work in process consisted of Jobs 4 and 6. 6. Jobs 1 and 3 and one-half of Job 2 were sold on account for $20,000, $17,400, and $14,40 respectively Required a. Open general ledger T accounts for Materials Inventory, Wages Payable Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Also set up sidiary T accounts as job order cost sheets for each job. Prepare general journal propriate entries to any accounts listed in requirement (a). Key each entry parentheca related number in the problem data. Determine the balances of any accounts necessary and prepare schedules of jobs in in process and jobs in ending finished goods to confirm that they agree with the rela Foundry Ov Overhead b. entries to record the summarized transactions for the month, and pos to the c. accountsExplanation / Answer
b) Journal Entries: Date Accounts Titles Debit $ Credit $ 1 Material 58000 AP 58000 (being material purchased on account) 2 WIP 32800 Foundry overhead 6200 Material 39000 (being material consumed) 3 WIP 18600 Foundry overhead 3400 Payroll payable 22000 (being labor incurred) 4 WIP 37200 Foundry overhead 37200 (Being overhead applied) 5 Foundry overhead 26880 Prepaid Insurance 1480 Property taxes 2360 Utilities expense 5280 Depreciation 7440 Other costs 10320 (being actual overhead incurred) 6 FG Inventory 57800 WIP 57800 [(32800+18600+37200) - (12000+1400+(4600+1200)*3)] 7 AR 51800 Sales 51800 (being sales booked) 8 COGS 33600 FG Inventory 33600 (being COGS booked) a) T-Accounts : DEBIT AMOUNT $ CREDIT AMOUNT $ Material a/c: AP 58000 WIP 32800 F Overhead 6200 c/b 19000 WIP a/c: Mat 32800 FG Inventory 57800 Payroll 18600 c/b 30800 F Overhead 37200 Foundry Overhead A/c: Mate 6200 WIP 37200 payroll 3400 Prepaid Insurance 1480 Property taxes 2360 Utilities expense 5280 Depreciation 7440 Other costs 10320 C/B 720 Finished Goods Inventory A/c: WIP 57800 COGS 33600 C/B 24200 COGS A/C: FG Inventory 33600 c) Schedule for FG Inventory: Amount $ Total WIP 88600 Less: transferred to FG 57800 (Job 1,2,3,5) Closing FG Invenory 30800 (Job 4 & 6)
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