Question

k1 Hourly veges of quality control employees 1011 used to lubricate factory equipment Workson's compensation insurance for factory workers Electricity costs for office building 01 vice-president of production'. salary PL Vacation paid accrued by office employees 9) Entertainment expenses of vice-president of marketing ) cost of repairing roof of warehouse scost of constructing security fencing around factory grounds t) Estimated warranty costs on products sold 3,200 12.) - Entries for direct labor and factory overhead Answer Shout P166-4 Craus Industries Inc. manufactures recreational vehicles. Kraus uses a job order cost system. he time tickets from July jobs are summarized below. Job 501 $4,200 Job 502 Job 503 2,870 Job 504 3,650 Factory supervision PO 2,450 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of 12 per direct labor hour. The direct labor rate is $30 per hour 1. Journalize the entry to record the factory labor costs. ). Journalize the entry to apply factory overhead to production for July. Answer sheet pq z # 36 Factory overhead rate, entry for applying factory overhead, and factory over- Factory head account balance The chief cost accountant for Dr. Cinnamon Beverage Co. estimated that total factory Overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be 106,800, and total direct labor costs would be 89,000 During April, the actual direct labor cost totaled $7,500, and factory overhead cost incurred totaled $9,150... a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for April. A 1n11.- C.1.------ --- Land DIA .. Ne a mt

Answer 1

Answer-32-a-Journal entry to record the factory Labor Cost:-

Account Title	Debit ($)	Credit ($)
Work in process ($4,200+$3,200+$2,870+$3,650)	13,920
Factory Overhead	2,450
Wages payable		16,370

b-Journal entry to apply factory overhead to production for July:-

Account Title	Debit ($)	Credit ($)
Work in process ($13,920*12/30)	5,568
Factory Overhead		5,568

36-a-The predetermined factory overhead rate = Estimated total factory overhead cost/ Estimated total direct labor costs

=$106,800/ $89,000

=$1.2 per direct labor

b-Journal entry to apply factory overhead to production for April:-

Date	Account Title	Debit ($)	Credit ($)
Apr.30	Work-in-process -Blending Department	9,000
	Factory Overhead-Blending Department		9,000

Working:-

Factory overhead applied to production for April= Predetermined Factory Overhead Rate*Actual Direct Labor Cost for April

=$1.2*$7,500

=$9,000

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