The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels.

Question

The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels. To complete the job they drew 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter. $375.00 is applied to each job as overhead due to setup and teardown and $2.25 is applied as overhead for each drop-forge stroke. Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6 1/2 hours of labor by the team. When the job was complete Job 051507A was transferred to SFGI (Semi-finished Goods Inventory). When the job was transferred, 20 sheets were returned unused to raw material inventory, 75 grommet sets were returned, and there were 1,115 strokes on the counter. Journalize all events depicted as of May 15th. Show complete journal entries and calculations. Im looking for the amounts to post to the wip, materials, lobor, factory overhead, etc when the job is started and the adjustments when it is complete

Explanation / Answer

%u201Cload%u201D the job with raw materials

May 15th WIP - Job 051507A 1,382.50 ($1,210.00 + $172.50)

Raw Material Inventory 1,382.50

May 15th WIP - Job 051507A 375.00 (Mfg overhead for setup)

WIP - Job 051507A 2,508.75 (Mfg overhead for strokes)

Mfg Overhead 2,883.75

May 15th WIP - Job 051507A 218.40 (($22.50 + $11.10) %uF0B4 6.5 hrs)

Wages Payable or Wages Expense 218.40

May 15th SFGI 4,451.40

Raw Materials 33.25 ($22.00 + 11.25)

WIP - Job 051507A 4,484.65

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