Problem 23-6A (Part Level Submission) In January, an order C was received. The s

Question

Problem 23-6A (Part Level Submission) In January, an order C was received. The standard cost of one unit of Product B is as follows. Direct materials Direct labor Overhead 3 pounds at $1.30 per pound 1.60 hour at $8.00 per hour 2 hours (variable $4.10 per machine hour; fixed $3.30 per machine hour) $3.90 12.80 14.80 $31.50 Standard cost per unit Normal capacity for the month was 4,180 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. Purchased 5,100 pounds of raw materials on account at $1.35 per pound 2. Requisitioned 5,100 pounds of raw materials for Job No. 12. 3. Incurred 2,505 hours of direct labor at a rate of $7.90 per hour. 4. Worked 2,505 hours of direct labor on Job No. 12. 5. Incurred manufacturing overhead on account $23,550 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed. 7. Completed Job No. 12. 8. Billed customer for Job No. 12 at a selling price of $135,000 Printer Version

Explanation / Answer

1 Raw material inventory 6885 (5100*1.35)                   Accounts payable 6885 2 Work in progress inventory 6885                  Raw material inventory 6885 3 Wages expense 19790 (2505*7.90)                  Cash 19790 4 Work in progress inventory 19790                 Wages expense 19790 5 Manufacturing overheads 23550                 Cash 23550 6 Work in progress inventory 61864 (4180*14.80)                 Manufacturing overheads ' 61864 7 Finished goods inventory 88539                Work in progress inventory 88539 8 Accounts receivable 135000               Sales revenue 135000 Cost of goods sold 88539              Finished goods inventory 88539

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