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ID: 2402167 • Letter: L
Question
Looking for solutions for each of the problems. Thanks!Looking for solutions for each of the problems. Thanks!
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,500 of indirect materials and $11,800 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as tollows, in summary form Job 301 Job 302 Direct materials Si0,500 Direct materials $21,600 Direct labor 7,200 Direct labor 15,600 Factory overhead 4,752 Factory overhead 10,296 Total $22,452 Total $47,496 Job 303 Job 304 Direct materials $23,800 Direct materials $15,900 Direct labor 19,100 Direct labor 14,000 Factory overhead- Factory overhead Required: Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation. Refer to the Chart of Accounts for exact wording of account titles a. Direct and indirect materials used b. Direct and indirect labor used c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost) d. Completion of Jobs 301 and 302
Explanation / Answer
S. No. Account Tittle Debit Credit A Work in Progress (10500+23800+21600+15900) $71,800.00 Manufacturing overheads $7,500.00 Raw material inventory $79,300.00 To record direct and Indirect Mateial Used B Work in progress( 7200+19100+15600+14000) $55,900.00 Manufacturing overheads $11,800.00 Wages payable $67,700.00 To record direct and Indirect Labour Used C Work in progress (w/Note-1) $36,894.00 Manufacturing overheads $36,894.00 To record Factory Overhead applied on Job D Finished goods ($22452+$47496) $69,948.00 Work in progress $69,948.00 Working Note:- Predetermined Overhead Rate= Factory Overhead Incurred Job1/ Direct Labour (base)Job 1 =$4752/7200=66% Factory Overhead applied = Direct Labour USedX Pre determined Overhead Rate =$55900*66%=$36894
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