1. On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account

Question

1.        On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account at $125 per roll for use within the production process. On November 5, 4 rolls of this paper are issued to Job 157A in the Printing Department. The Printing Department records $675 in direct labor and $1,150 of factory overhead to Job 157A. On November 8, Printing transfers Job 157A to the Folding Department. The Folding Department applies $450 in direct labor and

$655 in factory overhead to Job 157A. Job 157A is transferred to Finished Goods inventory on November 9. (19-167)

(a)         Journalize the purchase of the paper.

(b)         Journalize the transfer of raw materials to work in process, the application of direct labor, and the application of manufacturing overhead to Job 157A while in the Printing Department.

(c)         Journalize the transfer of Job 157A to the Folding Department at actual cost.

(d)         Journalize the application of direct labor and the application of manufacturing overhead to Job 157A while in the Folding Department.

(e)         Journalize the transfer of Job 157A to Finished Goods Inventory at actual cost.

Explanation / Answer

a Nov. 2 Raw Materials 625         Accounts Payable 625 b Nov. 5 Work in Process—Printing 500         Raw Materials 500 Nov. 5 Work in Process—Printing 675          Wages Payable 675 Nov. 5 Work in Process—Printing 1150          Factory Overhead 1150 c Nov. 8 Work in Process—Folding 2325          Work in Process—Printing 2325 d Nov. 8 Work in Process—Folding 450          Wages Payable 450 Nov. 8 Work in Process—Folding 665          Factory Overhead 665 e Nov. 9 Finished Goods 3440         Work in Process—Folding 3440

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