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, $7,500 of indirect materials and $11,800 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:
Job 301 | Job 302 | ||
Direct materials | $10,500 | Direct materials | $21,600 |
Direct labor | 7,200 | Direct labor | 15,600 |
Factory overhead | 4,752 | Factory overhead | 10,296 |
Total | $22,452 | Total | $47,496 |
Job 303 | Job 304 | ||
Direct materials | $23,800 | Direct materials | $15,900 |
Direct labor | 19,100 | Direct labor | 14,000 |
Factory overhead | — | Factory overhead | — |
Required:
Journalize the Jan. 31 summary entries to record each of the
following operations for January (one entry for each operation).
Refer to the Chart of Accounts for exact wording of account titles.
|
General Journal for the month of January
Date | Accounts Title | Debit | Credit |
A. | Journal Entries for Direct and Indirect Material used | ||
Work in process- Job 301 | 10,500 | ||
Work in process- Job 302 | 21,600 | ||
Work in process- Job 303 | 23,800 | ||
Work in process- Job 304 | 15,900 | ||
Factory Overhead | 7,500 | ||
Material Inventory | 79,300 | ||
( To record direct material and indirect material used in various jobs) | |||
B. | Journal entries for Direct and Indirect Labor used | ||
Work in process- Job 301 | 7,200 | ||
Work in process- Job 302 | 15,600 | ||
Work in process- Job 303 | 19,100 | ||
Work in process- Job 304 | 14,000 | ||
Factory Overhead | 11,800 | ||
Wages Payable | 67,700 | ||
(To record direct labor and indirect labor) | |||
C. | Journal entries for Factory overhead applied to all four jobs | ||
Work in process- Job 301 | 2,520 | ||
Work in process- Job 302 | 5,460 | ||
Work in process- Job 303 | 6,685 | ||
Work in process- Job 304 | 4,900 | ||
Factory Overheads | 19,565 | ||
(To record Factory Overhead @0.35 per direct labor cost)1 | |||
D. | Journal Entries for Completion of Job 301 and Job 302 | ||
Finished Goods Inventory | 62,860 | ||
Work in process- Job 3012 | 20,200 | ||
Work in process- Job 3023 | 42,660 | ||
(To record finished goods of Job 301 and Job 302) |
Working Notes :
1) Factory Overhead Allocation rate = Total Factory Overhead/Total Direct Labor Cost
= $7,500 + $11,800/($ 7,200 + $15,600 + $19,100+ $14,000)
= $ 19,300 /$55,900
= $0.35 per direct labor dollar cost
Factory overhead applied to all jobs:
Direct labor dollar cost of the job * Factory overhead allocation rate
Job 301 = $7,200 * $0.35 = $2,520
Job 302 = $15,600 * $0.35 = $5,460
Job 303 = $19,100 * $0.35 = $6,685
Job 304 = $14,000 * $0.35 = $4,900
2) Finished Goods value in Job 301 = Material Used + Labor used + Factory Overhead
= $ 10,500+ $7,200 + $2,520 = $20,220
3) Finished Goods value in Job 302 = Material Used + Labor used + Factory Overhead
= $ 21,600 + $15,600 + $ 5,460 = $42,660
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed...
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, $7,500 of indirect materials and $11,800 of...
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, $7,500 of indirect materials and $11,800 of...
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, $7,800 of indirect materials and $11,100 of...
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, $8,400 of indirect materials and $13,700 of...
Completed 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, $8,000 of indirect materials and $12,400...
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 costs sheets. Jobs 303 and 394 are still in process at the end if 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, $7,000 of indirect materials and $11,2000 of...
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...
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, $7,000 of indirect materials and $11,200 of...
Instructions 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, $7,800 of indirect materials and $11,100...
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, $2,910 of indirect materials and $35,210 of...