Enos Printing Corp. uses a job order cost system. The following data summarize t
ID: 464088 • Letter: E
Question
Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s production. 1. Materials purchased on account $196,700, and factory wages incurred $94,100. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 $37,040 $19,800 A21 45,020 22,600 A22 37,800 16,500 A23 41,370 27,100 General factory use 5,070 8,100 $166,300 $94,100 3. Manufacturing overhead costs incurred on account $51,600. 4. Depreciation on factory equipment $15,850. 5. Depreciation on the company’s office building was $14,300. 6. Manufacturing overhead rate is 86% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23.
Prepare entries to record the operations summarized above.
Explanation / Answer
Date::::::::::::Particulars::::::::::::::::::::::::::::::::::::::::::::::LF:::::::::::::::::Debit:::::::::::::::::Credit
1a)::::::::::::::::Raw materials Inventory Dr A/c::::::::::::::N/A::::::::::::$196,700
To Accounts payable A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$196,700
(Being Raw materials Inventory purchased on account has recorded)
b):::::::::::::::::::Factory labor A/c DR::::::::::::::::::::::::N/A:::::::::::::::::::$94,100
To wages payable A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$94,100
(Being wages payable has recorded)
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2):::::::::::::::::::Working in process inventory A/c DR:::::::::::::::::N/A::::::::::::$161,230
Manufacturing Overhead A/c Dr:::::::::::::::::::::::::N/A::::::::::::$5,070
To Factory labor A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$166,300
::::::::::::::::Working in process inventory A/c DR:::::::::::::::::N/A::::::::::::$86,000
Manufacturing Overhead A/c Dr:::::::::::::::::::::::::N/A::::::::::$8,100
To Factory labor A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$94,100
(Being Materials requisitioned and factory labor used has recorded)
$37,040 + 45,020 + 37,800 + 41,370 =$161,230
$161,230+5,070=$166,300
$19,800 + 22,600+ 16,500+ 27,100=$86,000+ 8,100=$94,100
$86,000+ 8,100=$94,100
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3):::::::::::::: Manufacturing overhead A/c DR::::::::::::::::::::N/A:::::::::::: $51,600
To wages payable A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: $51,600
(Being Manufacturing overhead has recorded)
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4):::::::::::::::::::::Manufacturing overhead A/c Dr:::::::::::::::N/A::::::::::::::::::$15,850
To Accumulated Depreciation A/c :::::::::::::::::::::::::::::::::::::::::::::::::$15,850
(Being Depreciation on factory equipment provided has recorded)
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5):::::::::::::::::::::Depreciation A/c Dr:::::::::::::::N/A::::::::::::::::::$14,300
To Accumulated Depreciation A/c :::::::::::::::::::::::::::::::::::::::::::::::::$14,300
(Being Depreciation on factory equipment provided has recorded)
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6)::::::::::::::Working in process inventory A/c DR:::::::::::::::::N/A:::::::::::$73,960
To Manufacturing Overhead A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$73,960
:$86,000 * 86/100=$73,960
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7):::::::::::::::Finished Goods Inventory A/c Dr::::::::::::::::::::::N/A::::::::::$221,950
To work in Inventory A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$221,950
($123,430+$69,500+$15,850+$8,100+$5,070 =$221,950)
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