Question

Chart of Accounts CHART OF ACCOUNTS Old School Publishing Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 560 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,600 of indirect materials and $12,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Answer 1

			job 301	job 302	job 303	job 304	total
Direct materials			10,600	21,900	23,200	15,500	71,200
direct labor			8,300	15,000	19,000	11,100	53,400
factory overhead			6,557	11850	15010	8769	42,186
total			25,457	48,750	57,210	35,369	166,786
		overhead rate = 6557/8300
			0.79
			79%
	journal Entries
	Accounting titles & Explanations					Debit	Credit
a)	Work in process					71,200
	Factory overhead					7,600
	Materials						78,800
b)	Work in process					53,400
	Factory overhead					12,100
	Factory wages payable						65,500
c)	Work in process					42,186
	Factory overhead						42,186
d)	Finished goods					74,207
	work in process						74,207