Enos Printing Corp. uses a job order cost system. The following data summarize t

Question

Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s production.

Job Number

Materials

Factory Labor

Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(1)

(To record materials purchases)

(To record factory wages)

(2)

(To record materials put into production)

(To record labor put into production)

(3)

(4)

(5)

(6)

(7)

1. Materials purchased on account $192,000, and factory wages incurred $87,300. 2. Materials requisitioned and factory labor used by job:

Explanation / Answer

Solution -

Depreciation on Building will be depreciaiton expenses however Depreciation on Assets related to Production will be considered as manufacturing overheads

No. Account Titles and Explanation Debit Credit 1 Raw Materials 192000 Accounts Payable 192000 (To record materials purchases) Factory Wages 87300 Factory Wages Payable 87300 (To record factory wages) 2 Work in Process ( sum of all jobs ) 1,53,530 Manufacturing Overhead 4,470 Raw Materials 1,58,000 (To record materials put into production) Work in Process 80,000 Manufacturing Overhead 7,300 Factory Labor 87,300 (To record labor put into production) 3 Manufacturing Overhead 49500 Accounts Payable 49500 4 Manufacturing Overhead 14550 Accumulated Depreciation--Equipment 14550 5 Depreciation Expense 14300 Accumulated Depreciation--Equipment 14300 6 Work in Process ( 90% of direct labor cost.) 72000 Manufacturing Overhead 72000 7 Finished Goods 49500 Work in Progress 49500

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