The following transactions occurred in during the month of January a) Purchased

Question

The following transactions occurred in during the month of January a) Purchased $10,000 of raw materials on account b) Requisitioned $8,000 of materials for Jobs 101-105 c) Requisitioned $500 of materials for general factory use d) Paid factory workers wages $7,500 e) Paid factory supervisor salary of $1,500 f) Paid factory rent and utilities of $4,000 g) Applied factory overhead: predetermined rate is $50 per direct labor hour. January Direct Labor hours = 100 h) Completed jobs 101 and 102-total product cost of $2,250 i) Sold job 101 which had product costs of $1,200 for S3,800 Journalize under a Job Order Cost Svstem Date Description PostDebit Credit 4 4 10 10 12 13 14 15 12 13 14 15 18 19 20 21 19 20 23 24 24

Explanation / Answer

Job Order Cost System

Lean Accounting System

Date Description Post Debit Credit 1 a) Raw materials inventory 10000 2 Accounts payable 10000 3 (To record raw materials purchased on account) 4 b) Work in process inventory 8000 5 Raw materials inventory 8000 6 (To record direct materials requisitioned) 7 c) Factory overhead 500 8 Raw materials inventory 500 9 (To record indirect materials requisitioned) 10 d) Work in process inventory 7500 11 Cash 7500 12 (To record direct labor cost paid) 13 e) Factory overhead 1500 14 Cash 1500 15 (To record factory supervisor salary paid) 16 f) Factory overhead 4000 17 Cash 4000 18 (To record factory rent and utilities paid) 19 g) Work in process inventory (100 x $50) 5000 20 Factory overhead 5000 21 (To record factory overhead applied) 22 h) Finished goods inventory 2250 23 Work in process inventory 2250 24 (To record jobs completed) 25 i) Cash/Accounts receivable 3800 26 Sales revenue 3800 27 (To record sales) 28 Cost of goods sold 1200 29 Finished goods inventory 1200 30 (To record cost of sales)

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