Job Cost Journal Entries Prior to the beginning of 2016, Stapleton Company estim

Question

Job Cost Journal Entries

Prior to the beginning of 2016, Stapleton Company estimated that it would incur $153,000 of manufacturing overhead cost during 2016, using 17,000 direct labor hours to produce the desired volume of goods. On January 1, 2016, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $48,000, $-0-, and $87,000, respectively.

Required

Prepare general journal entries to record the following for 2016:

Job Cost Journal Entries Prior to the beginning of 2016, Stapleton Company estimated that it would incur $153,000 of manufacturing overhead cost during 2016, using 17,000 direct labor hours to produce the desired volume of goods. On January 1, 2016, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $48,000, s-0-, and $87,000, respectively. Required Prepare general journal entries to record the following for 2016 a. Purchased materials on account, $316,000. Description Debit Credit Materials inventory Accounts payable b. Of the total dollar value of materials used, $284,000 represented direct material and $35,000 indirect material Description Work in process inventory Manufacturing overhead Debit Credit Materials inventory c. Determined total factory labor, $189,000 (18,000 hrs. d. Of the factory labor, 15,800 were direct labor hours. $10.50/hr.). Description Work in process inventory Manufacturing overhead Debit Credit Wages payable e. Applied manufacturing overhead based on direct labor hours to work in process. Description Debit Credit Work in process inventory Manufacturing overhead

Explanation / Answer

Journal Entry

(a) Purchase of materials on account $316000

(b) of the total Doller value of material used $284000 represent direct material and $35000 indirect material

(c ) Determined Total Factory Label $189000 (18000 hrs*10.5 )

(d) of the factory labour 15800 hrs

(e ) Applied Manufacturing Overhead based on Direct labour hours to WIP

(f) Determined actual manufacturing overhead recorded other than those item already recorded $83000

(g) ending inventory of WIP and finished good were $57000 and $71800 respectively

(h) Transferred the balance of manufacturing overhead to cost of goods sold

Note:

Calculation of cost of goods sold

431200

Description Debit Credit Material Inventory 316000 Accounts Payable 316000

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.