Problem 1.(Job order cost system-journal entries) Paxton Products, which uses a

Question

Problem 1.(Job order cost system-journal entries) Paxton Products, which uses a job order cost system, completed the following transactions during the current month: (A) Materials costing $75,000 were used on various jobs. (B) Time cards of direct workers indicate direct labor costs of $125,000 for the month. (C) Overhead is applied to jobs at a rate of 75% of direct labor cost. (D) Jobs with total accumulated costs of $165,000 were finished during the month. (E) Units costing $210,000 were sold during the month at sales prices totaling $390,000. All sales were on account. In the space provided, prepare a general journal entry for the month summarizing each of the above categories of transactions. Explanations may be omitted.

Explanation / Answer

Answer:-

Materials 75000

Labour 25000

OH 93750

Jobs finished -165000

WIP 128750

Sales 390000

Cost of units sold -210000

Profit 180000

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