Kapoor Company uses job-order costing. During January, the following data were r

Question

Kapoor Company uses job-order costing. During January, the following data were reported: Materials purchased on account: direct materials, $99,500; indirect materials, $14,800. Materials issued: direct materials, $81,500; indirect materials, $ 8,800. Labor cost incurred: direct labor, $67,000; indirect labor, $18,770. Other manufacturing costs incurred (all payables), $46,200. Overhead is applied on the basis of 110 percent of direct labor cost. Work finished and transferred to Finished Goods Inventory cost $235,700. (1) Finished goods costing $212,000 were (2) sold on account for 140 percent of cost. Make the entry to record the cost of the jobs first, followed by the entry to record the revenue from their sale. Any over- or underapplied overhead is closed to Cost of Goods Sold.

Required:

1. Prepare journal entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Materials    $

Accounts Payable    $

b. Work in Process $    $

Overhead Control $    $

Materials    $    $

c. Work in Process $    $

Overhead Control    $ $

Wages Payable $ $

d. Overhead Control $

Various Payables $

e. Work in Process $

Overhead Control $

f. Finished Goods $

Work in Process $

g (1). Cost of Goods Sold $

Finished Goods $

g (2). Accounts Receivable $

Sales Revenue    $

h. Cost of Goods Sold $

Overhead Control $

2. Prepare a T-account for Overhead Control. Post the entries to the T-account in the same order in which they were journalized. If an amount is zero, enter "0". What is the ending balance in this account?

Overhead Control

b

e

c

d

Balance

h

Balance

3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10,000, and post the entries to the T-account in the same order in which they were journalized. Work in Process Inventory

Beginning Balance

f

b

c

e

Balance

Explanation / Answer

S.NO. ACCOUNTS TITLES AND EXPLANATIONS DEBIT IN $ CREDIT IN $ a. Raw material Inventory Dr. 114,300    Accounts payble 114,300 (For raw material purchased) b. Work in process Inventory Dr. 81,500 Overhead control 8,800    Raw material Inventory Account 90,300 (for raw material issued as direct and indirect material) c Work in Process Inventory Dr. 67,000 Overhead control 18,770      Wages payable 85,770 (for wages charged to work in process and overheads Account) d. Overhead control Account 46,200     Vvarious payable 46,200 (For manufacturing overheads incurred for production) e. Work in Process Inventory Dr. 73,700      Overhead Control 73,700 (For manufacturing overhead applied during the month) f Finished Goods Inventory 235,700     Work in Process Inventory 235,700 (For transferring completed goods to next process) g.1 Cost of Goods sold account Dr. 212,000     Finished Goods Inventory Account 212,000 (for cost of goods sold transferred from finished goods) g.2 Accounts receivable Dr. 296,800     Sales revenue 296,800 (for goods sold on account) h. Cost of Goods sold Dr. 70    Overhead control 70 (for under-applied overheads) OVERHEADS CONTROL Raw material Inventory 8,800 Work in Process 73,700 Wages payable 18,770 Cost of goods sold 70 Vraious payable 46,200 balance Nil WORK IN PROCESS INVENTORY- Balance 10,000 Finished Goods Inventory 235,700 Raw material Inv. 81,500 Wages Payable 67,000 Overhead control 73,700 Balance 3500

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

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