Kraus Industries Inc. manufactures recreational vehicles. Kraus uses a job order
ID: 2351122 • Letter: K
Question
Kraus Industries Inc. manufactures recreational vehicles. Kraus uses a job order cost system. The time tickets from July jobs are summarized below.
Job 501 $4200
Job 502 3,200
Job 503 2,870
Job 504 3,650
Factory supervision 2,450
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $12 per direct labor hour. The direct labor rate is $30 per hour.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank or enter zero ("0").
Work in process
factory overhead
Wages payable
b. Journalize the entry to apply factory overhead to production for July.
Work in process
Factory overhead
Explanation / Answer
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank or enter zero ("0"). Work in process DEBIT 13920 factory overhead DEBIT 2450 Wages payable CREDIT 16370 b. Journalize the entry to apply factory overhead to production for July. Work in process DEBIT 5568 (13920/30*12) Factory overhead CREDIT 5568
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