Entries for factory costs and jobs completed Instructions Chart of Accounts Jour
ID: 2527620 • Letter: E
Question
Entries for factory costs and jobs completed
Instructions
Chart of Accounts
Journal
Instructions
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,400 of indirect materials and $13,700 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
Required:
Chart of Accounts
Entries for factory costs and jobs completed
Instructions
Chart of Accounts
Journal
Journal
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PAGE 10
JOURNAL
Score: 45/125
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8.64 / 24
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A. Record direct materials costs in the work in process account, and indirect materials costs in the factory overhead account.
B. Record direct labor costs in the work in process account, and indirect labor costs in the factory overhead account.
C. Apply factory overhead based on direct labor costs.
D. When a job is completed, it is transferred out of work-in-process and into finished goods.
Job 301 Direct materials $10,100 Direct labor 8,500 Factory overhead 5,950 Total $24,550Explanation / Answer
Job cost sheet Job 301 Job 302 Job 303 Job 304 Direct materials $10,100 $19,000 $23,700 $12,700 Direct labor 8,500 16,200 16,300 11,800 Factory overhead 5,950 11,340 0 0 Total $24,550 $46,540 $40,000 $24,500 Date Description Dr Cr A Work In process $24,550 Factory Overhead 8400 Material $32,950 (being material used recorded) B Work In process $46,540 Factory Overhead 13700 Wages payable $60,240 (being labor used recorded) C Work In process 17,290 Factory Overhead 17,290 (being factiry overhead applied to Job 301 ans 302 D Finished Goods (24550+46540) $71,090 Work In process $71,090 (being job 301 and 302 transferred) If any doubt please comment
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