Question

Chapter 2 Job Order Cost Problem Hi Gloss Printing Company uses a job order cost system. The following data summarize the operations related to production for June, the first month of operations: a. (Pts. 4) Materials purchased on account, $43,500. b. (Pts. 18) Materials requisitioned and factory labor used, use one entry for materials and a separate entry for factory labor Materials Factory Labor Job 101 $9.000 $5,700 2,890 Job 103 3,100 Job 104 2,240 Job 105 8,500 4,060 Job 106 4,180 2,500 For general factory use 2,100 1,800 Job 102 3 175 200 c. (Pts. 4) Factory overhead costs incurred on account, $10,800. d. (Pts. 4) Depreciation of machinery and equipment, $3,500. e. (Pts. 6) The factory overhead rate is $25 per machine hour. Machine hours used: Machine Hours 250 95 195 Job 101 Job 102 Job 103 Job 104 Job 103 Job 106 Total 1,025

Answer 1

Transaction	Account Titles and Explanation	Debit	Credit
a.	Materials inventory	43500
	Accounts payable		43500
	(To record materials purchased on account)
b.	Work in process inventory	32655
	Factory overhead	2100
	Materials inventory		34755
	(To record materials requisitioned)
	Work in process inventory	20490
	Factory overhead	1800
	Factory labor		22290
	(To record factory labor used)
c.	Factory overhead	10800
	Accounts payable		10800
	(To record factory overhead costs incurred on account)
d.	Factory overhead	3500
	Accumulated depreciation		3500
	(To record depreciation on machinery and equipment)
e.	Work in process inventory	25625
	Factory overhead (1025 x $25)		25625
	(To record factory overhead applied)
f.	Finished goods inventory ($20950 + 8440 + 6965 + 18310)	54665
	Work in process inventory		54665
	(To record cost of jobs completed)
g.	Accounts receivable ($29000 + 10400 + 20600)	60000
	Sales revenue		60000
	(To record jobs sold)
	Cost of goods sold ($20950 + $8440 + $18310)	47700
	Finished goods inventory		47700
	(To record cost of jobs sold)

Working:

	Job 101	Job 102	Job 103	Job 104	Job 105	Job 106	Total
Direct materials	9000	3175	5200	2600	8500	4180	32655
Direct labor	5700	2890	3100	2240	4060	2500	20490
Factory overhead	6250	2375	4875	2125	5750	4250	25625
Total cost $	20950	8440	13175	6965	18310	10930	78770