ssagnments/457253 ?Amoor, ?0vford English DKto M McGraw-Hill Connect DPint rest

Question

ssagnments/457253 ?Amoor, ?0vford English DKto M McGraw-Hill Connect DPint rest DINrTY Kimmel, Accounting, 6e Helo I Syst ATOR PRINTER VI Problem 23-6A (Part Level Submission) Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 2,000 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials Direct labor Overhead Standard cost per unit $3.90 13.00 14.20 $31.10 3 pounds at $1.30 per pound 1.30 hour at $10.00 per hour 2 hours (variable $4.50 per machine hour; fixed $2.60 per machine hour) Normal capacity for the month was 4,100 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. Purchased 6,400 pounds of raw materials on account at $1.36 per pound. 2. Requisitioned 6,400 pounds of raw materials for Job No. 12. 3. Incurred 2,700 hours of direct labor at a rate of $9.95 per hour Worked 2,700 hours of direct labor on Job No. 12. Incurred manufacturing overhead on account $30,600. Applied overhead to Job No. 12 on basis of standard machine hours allowed Completed Job No. 12. 4. 5. 6. 7.

Explanation / Answer

JORGENSEN CORPORATION General Journal for the month of January Ref Account Debit Credit 1 Raw material 8704 Accounts Payable 8704 (Purchase of raw material on account) 2 Work-in-proces - Job. #12 8704 Raw material 8704 (Raw material issued for production) 3 Wages Expense 26865 Wages Payable 26865 (Wages incurred) 4 Work-in-proces - Job. #12 26865 Wages Expense 26865 (Direct labor charged to Job #12) 5 Manufacturing overhead 30600 Accounts Payable 30600 (Manufacturing overhead incurred) 6 Work-in-proces - Job. #12 28400 Manufacturing overhead 28400 (Manufacturing overhead applied to job#12) 7 Finished goods 63969 Work-in-proces - Job. #12 63969 (Cost of completed job#12 transferred) 8 Accounts Receivable 180000 Sales 180000 (Sale of Job#12 recorded)

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