Question

**MUST BE ABLE TO ANSWER ALL QUESTIONS**

A) During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials $5,400 on account, factory labor $6,100 of which $5,900 relates to factory wages payable and $200 relates to payroll taxes payable, and utilities payable $2,500.

Prepare separate journal entries for each type of manufacturing cost.

Debit Credit Date Account Titles and Explanation Jan. 31 (To record purchase of raw materials on account) (To record factory labor costs) 31 (To record entry for utilities payable)

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B) In January, Dieker Company requisitions raw materials for production as follows: Job 1 $970, Job 2 $1,400, Job 3 $760, and general factory use $710.
Prepare a summary journal entry to record raw materials used.

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C) During January, time tickets show that the factory labor of $6,900 was used as follows: Job 1 $2,390, Job 2 $1,700, Job 3 $1,520, and general factory use $1,290.
Prepare a summary journal entry to record factory labor used.

D) Marquis Company estimates that annual manufacturing overhead costs will be $807,000. Estimated annual operating activity bases are direct labor cost $477,000, direct labor hours 55,000, and machine hours 110,000. Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

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D) During the first quarter, Francum Company incurs the following direct labor costs: January $55,300, February $60,000, and March $70,200. For each month, prepare the entry to assign overhead to production using a predetermined rate of 72% of direct labor cost.

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E) In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $27,700 and Job 11 $32,700. On March 31, Job 10 is sold to the customer for $44,900 in cash.
Journalize the entries for the completion of the two jobs and the sale of Job 10.

Answer 1

A)	Date	Account title & Explanations					Debit	Credit
	31-Jan	Raw materials inventory					5,400
		Accounts payable						5,400
	31-Jan	Factory wages					6,100
		Factory wages payable						5,900
		Factory payroll taxes payable						200
	31-Jan	Manufacturing overhead					2,500
		Utilities payable/Accounts payable						2,500
B)	Date	Account title & Explanations					Debit	Credit
	31-Jan	Work in process inventory					3130
		manufacturing overhead					710
		Raw materials inventory						3840
C)	Date	Account title & Explanations					Debit	Credit
	31-Jan	Work in process inventory					5610
		manufacturing overhead					1290
		Factory wages payable						6900
D)		overhead rate per direct labor cost					169.18%
		overhead rate per direct labour hour					14.67
		overhead rate per machine hour					7.34
D)	Date	Account title & Explanations					Debit	Credit
	31-Jan	Work in process inventory					39816
		Manufacturing overhead						39816
	28-Feb	Work in process inventory					43200
		Manufacturing overhead						43200
	31-Mar	Work in process inventory					50544
		Manufacturing overhead						50544
E)	Date	Account title & Explanations					Debit	Credit
	31-Mar	Finished goods inventory					60400
		work in process inventory						60,400
	31-Mar	Cash					44,900
		Sales						44,900
	31-Mar	cost of goods sold					27,700
		finished goods inventory						27,700