_/_@ jump to pg go book contents 19-13 g Exercise 19-13 Recording events in job
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Question
_/_@ jump to pg go book contents 19-13 g Exercise 19-13 Recording events in job order costing P1 P2 P3 P4 Using Exhibit 19.12 as a guide, prepare summary journal entries to record the following transactions and events a through h for a company in its first month of operations. a. Raw materials purchased on account, $90,000. b. Direct materials used in production, $36,500. Indirect materials used in production, $19,200. c. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor. d. Paid cash for other actual overhead costs, $11,475. e. Applied overhead at the rate of 125 percent of direct labor cost. f. Transferred cost of jobs completed to finished goods, $56,800. g. Sold jobs on account for $82,000. The jobs had a cost of $56,800 e 801 h. Chose underappled r ovppled overhead o cost of ods soldExplanation / Answer
Recording of events under Job order costing Journal Entries Event Account Titles Debit Credit a Materials Inventory $90,000 Accounts Payable $90,000 b Work in process Inventory $36,500 Manufacturing Overheads $19,200 Materials Inventory $55,700 c-1 Work in process Inventory $38,000 Manufacturing Overheads $12,000 Wages Payable $50,000 c-1 Wages Payable $50,000 Cash $50,000 d Manufacturing Overheads $11,475 Cash $11,475 e Work in process Inventory $47,500 Manufacturing Overheads $47,500 f Finished Goods Inventory $56,800 Work in process Inventory $56,800 g-1 Accounts Receivable $82,000 Sales $82,000 g-2 Cost of goods sold $56,800 Finished Goods Inventory $56,800 h Manufacturing Overheads $4,825 Cost of goods sold $4,825 (recording of overapplied overheads)
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