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:
Job 301 | Job 302 | ||
Direct materials | $10,600 | Direct materials | $21,900 |
Direct labor | 8,300 | Direct labor | 15,000 |
Factory overhead | 6,557 | Factory overhead | 11,850 |
Total | $25,457 | Total | $48,750 |
Job 303 | Job 304 | ||
Direct materials | $23,200 | Direct materials | $15,500 |
Direct labor | 19,000 | Direct labor | 11,100 |
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.
|
CHART OF ACCOUNTSOld School Publishing Inc.General Ledger
ASSETS | |
110 | Cash |
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 |
143 | Prepaid Expenses |
181 | Land |
191 | Factory |
192 | Accumulated Depreciation-Factory |
LIABILITIES | |
210 | Accounts Payable |
221 | Utilities Payable |
231 | Notes Payable |
236 | Interest Payable |
241 | Lease Payable |
251 | Wages Payable |
252 | Consultant Fees Payable |
EQUITY | |
311 | Common Stock |
340 | Retained Earnings |
351 | Dividends |
390 | Income Summary |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
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 |
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.
a. Direct and indirect materials used. | |
b. Direct and indirect labor used. | |
c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). | |
d. Completion of Jobs 301 and 302. |
Transaction | General Journal | Debit | Credit |
a. | Work in process ($10600 + $21900 + $23200 + $15500) | 71200 | |
Factory overhead | 7600 | ||
Materials | 78800 | ||
(To record direct and indirect materials used) | |||
b. | Work in process ($8300 + $15000 + $19000 + $11100) | 53400 | |
Factory overhead | 12100 | ||
Wages expense | 65500 | ||
(To record direct and indirect labor used) | |||
c. | Work in Process (6557 + 11850 + 15010 + 8769) | 42186 | |
Factory overhead | 42186 | ||
(To record factory overhead applied) | |||
d. | Finished Goods (25457 + 48750) | 74207 | |
Work in Process | 74207 | ||
(To record completion of jobs 301 and 302) |
Factory overhead rate:
Job 301: $6557/$8300 = 79% of direct labor cost
Job 302: $11850/$15000 = 79% of direct labor cost
Factory overhead applied:
Job 303 = 79% x $19000 = $15010
Job 304 = 79% x $11100 = $8769
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, $7,600 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, $7,800 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, $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, $7,500 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, $8,400 of indirect materials and $13,700 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, $7,900 of indirect materials and $13,200 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 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, $7,000 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...