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Haslett Corporation uses standard costs with its job order cost accounting syste

ID: 2717859 • Letter: H

Question

Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,600 units of Product B was received. The standard cost of one unit of Product B is as follows.


Normal capacity for the month was 4,300 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

*** I CAN'T SEEM TO FIGURE OUT THE NUMBERS WITH ????? ***

Direct materials 2 pounds at $1.00 per pound $ 2.00 Direct labor 2.00 hour at $9 per hour 18.00 Overhead 2 hours (variable $4.50 per machine hour; fixed $3.50 per machine hour) 16.00 Standard cost per unit $36.00

Explanation / Answer

Haslett Corp Januray Production Job 12              1,600 units Journal entries Sr No Account Title Dr $ Cr$ 1 Inventory              3,746 Accounts Payable              3,746 2 WIP (Job 12)              3,746 Inventory              3,746 3 Direct Labor wages            29,258 Wages Payable            29,258 4 WIP (Job 12)            29,258 Direct Labor wages            29,258 5 Manufacturing OH            34,130 Accounts Payable            34,130 6 WIP (Job 12)            25,600 Manufacturing OH            25,600 (std m/c hr @2 hrs ,$8/hr for 1600 units) 7 WIP (Job 12)            58,604 Finished Goods Product B            58,604 8 Sales          137,600 Accounts receivable          137,600 Finished Goods Product B            58,604 Cost of goods Sold            58,604 ( underapplied OH not adjusted as no direction given for that ) The overhead appliaction rule is not very clearly mentioned , but assumed the standard predetrmined rate of $8 per machine hr= $16 per unit as per standard

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