Question

QUESTION 1

1. Using the Job Order Costing method, prepare journal entries for the following transactions:

   In this transaction for the month of October, the Jobs are Job A, Job B and Job C

   October1		Purchased direct materials on account, $107,700.
   2		Purchased indirect materials on account, $24,750.
   4		Requested direct materials costing $96,600 (all used on Job A) and indirect materials costing $19,050 for production.
   10		Paid the following overhead costs: utilities, $2,200; manufacturing rent, $1,900; and maintenance charges, $1,950.
   15		Recorded the following gross wages and salaries for employees: direct labor, $60,000 (all for Job A); indirect labor, $30,310.
   15		Applied overhead to production.
   19		Purchased indirect materials costing $13,775 and direct materials costing $95,225 on account.
   21		Requested direct materials costing $107,375 (Job A, $89,085; Job Y, $9,085; and Job C, $9,205) and indirect materials costing $15,700 for production.
   31		Recorded the following gross wages and salaries for employees: direct labor, $66,000 (Job A, $59,250; Job Y, $3,500; Job C, $3,250); indirect labor, $31,120.
   31		Applied overhead to production.
   31		Completed and transferred Job A (186 carts) and Job Y (5 carts) to finished goods inventory; total cost was $427,995.

   Note:    Overhead is applied at the rate of 90 percent of direct labor cost.

   No Inventory Balances

Answer 1

October
1	Direct materials inventory	$      1,07,700
	Accounts payable		$      1,07,700
2	Indirect materials inventory	$         24,750
	Accounts payable		$          24,750
4	WIP inventory	$         96,600
	Direct materials inventory		$          96,600
	Manufacturing overhead	$         19,050
	Indirect materials inventory		$          19,050
10	Manufacturing overhead [2200+1900+1950]	$            6,050
	Cash		$            6,050
15	WIP inventory	$         60,000
	Manufacturing overhead	$         30,010
	Factory payroll		$          90,010
15	WIP inventory [60000*90%]	$         54,000
	Manufacturing overhead		$          54,000
19	Direct materials inventory	$         95,225
	Accounts payable		$          95,225
	Indirect materials inventory	$         13,775
	Accounts payable		$          13,775
21	WIP inventory	$      1,07,375
	Direct materials inventory		$      1,07,375
	Manufacturing overhead	$         15,700
	Indirect materials inventory		$          15,700
31	WIP inventory	$         66,000
	Manufacturing overhead	$         31,120
	Factory payroll		$          97,120
31	WIP inventory [66000*90%]	$         59,400
	Manufacturing overhead		$          59,400
31	Finished goods inventory	$      4,27,995
	WIP inventory		$      4,27,995