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A machine shop that uses job order costing. Overhead isapplied to individual job

ID: 2433463 • Letter: A

Question

A machine shop that uses job order costing. Overhead isapplied to individual jobs ata predetermined rate based on directlabor costs. the job costs sheet for job no. 321 appearsbelow: Job Cost Sheet Job Number:321                                                        Date Started: May 10 Product: 2" Brass Checkvalves                                   Date Completes: May 21 Units Completed: 4,000 Direct omaterials used.....................................$7,720 Directlabor.....................................................  1,400 Manufacturing overheadapplied......................   3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general entries to record the completion of job no.321 A machine shop that uses job order costing. Overhead isapplied to individual jobs ata predetermined rate based on directlabor costs. the job costs sheet for job no. 321 appearsbelow: Job Cost Sheet Job Number:321                                                        Date Started: May 10 Product: 2" Brass Checkvalves                                   Date Completes: May 21 Units Completed: 4,000 Direct omaterials used.....................................$7,720 Directlabor.....................................................  1,400 Manufacturing overheadapplied......................   3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general entries to record the completion of job no.321 Direct omaterials used.....................................$7,720 Directlabor.....................................................  1,400 Manufacturing overheadapplied......................   3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general entries to record the completion of job no.321

Explanation / Answer

GENERAL JOURNAL

Work in Process Inventory

$12,200

                 Materials Inventory

$7,720

                 Direct Labor

$1,400

                 Manufacturing Overhead

$3,080

         (Manufacturingcosts incurred on job no.321)

Finished Goods Inventory

$12,200

                 Work in Process Inventory

$12,200

         (To recordcompletion of Job no. 321)

Accounts Receivable

$10,500

                  Sales

$10,500

          (Torecord credit sale of 2,100 units from Job no. 321

                                                              @ $5 per unit)

Cost of Goods Sold

$6,405

                   Finished Goods Inventory

$6,405

          (Torecord cost of sales for 2,100 units from Job no. 321

                                       2,100 units * $3.05 per unit)

GENERAL JOURNAL

Work in Process Inventory

$12,200

                 Materials Inventory

$7,720

                 Direct Labor

$1,400

                 Manufacturing Overhead

$3,080

         (Manufacturingcosts incurred on job no.321)

Finished Goods Inventory

$12,200

                 Work in Process Inventory

$12,200

         (To recordcompletion of Job no. 321)

Accounts Receivable

$10,500

                  Sales

$10,500

          (Torecord credit sale of 2,100 units from Job no. 321

                                                              @ $5 per unit)

Cost of Goods Sold

$6,405

                   Finished Goods Inventory

$6,405

          (Torecord cost of sales for 2,100 units from Job no. 321

                                       2,100 units * $3.05 per unit)

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