Jorgensen Corporation uses standard costs with its job order cost accounting sys
ID: 2512590 • Letter: J
Question
Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows.
Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred.
Billed customer for Job No. 12 at a selling price of $85,000.
(A):Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows.
Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred.
A:Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows.
Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred.
(a) Journalize the transactions.
(b) Post to the job order cost accounts.
(c) Prepare the entry to recognize the total overhead variance.
Direct materials 3 pounds at $1.30 per pound $3.90 Direct labor 1.80 hour at $10.00 per hour 18.00 Overhead 2 hours (variable $4.40 per machine hour; fixed $3.40 per machine hour) 15.60 Standard cost per unit $37.50Explanation / Answer
(a)
(b)
(c)
General journal Ref Account Title Debit Credit 1 Raw Material 4692 Accounts Payable 4692 (Purchase of raw material on account) 2 Work -in-process - Job.#12 4692 Raw Material 4692 (Raw material issued for Job.#12) 3 Wages Expense 18507 Wages Payable 18507 (Wages expense incurred for 1,860 hours) 4 Work -in-process - Job.#12 18507 Wages Expense 18507 (1,860 hours work assigned to Job#12) 5 Manufacturing Overhead 16850 Accounts Payable 16850 (Manufacturing overhead incurred) 6 Work -in-process - Job.#12 15600 Manufacturing Overhead 15600 (overhead applied to Job#12 as per standard) 7 Finished goods 38799 Work -in-process - Job.#12 38799 (Job #12 completed) 8 Accounts Receivable 85000 Sales 85000 (Billing of Job#12) Cost of goods sold 38799 Finished goods 38799 (Cost of Job#12 sold recorded)Related Questions
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