No. Account Titles and Explanation Debit Credit 1. (To record purchase of materi

Question

No.

Account Titles and Explanation

Debit

Credit

1.

(To record purchase of materials)

2.

(To record issuance of direct materials)

3.

(To record direct labor costs)

4.

(To assign factory labor to jobs)

5.

(To record overhead incurred)

6.

(To assign overhead to jobs)

7.

(To record transfer of completed work to finished goods)

More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2013 for each baseball bat:
Direct Materials Direct Labor Manufacturing
Overhead Standard Quantity 2 Pounds (Aluminum) 1/2 hour 1/2 hour Standard Price $4.00 $10.00 $6.00 Unit Standard Cost $8.00 $5.00 $3.00
In 2013, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor.
Actual results for 2013 are presented below: 1. Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900. 2. Direct materials used were 220,000 pounds of aluminum. 3. Direct labor costs were $575,260 for 58,700 direct labor hours actually worked. 4. Total manufacturing overhead was $352,000. 5. Actual production was 114,000 baseball bats.

Explanation / Answer

Working Notes:-

2)

JOurnal Entries are as follows :-

1) Standard Cost per unit Std Qty Rate Amount Direct Material 2 4 8 Direct Labour 0.5 10 5 Manu. Overheads 0.5 6 3 16

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