Question

E15.8 Enos Printing Corp, uses a job order cost system. The following data summarize e operations related to the first quarter's production. 1. Materials purchased on account $192,000, and factory wages incurred $87.300 2. Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 A23 General factory use Materials s 35,240 42,920 36,100 39,270 4,470 $158,000 Factory Labor $18,000 22,000 15,000 25,000 7,300 $87,300 3. Manufacturing overhead costs incurred on account $49,500. 4. Depreciation on factory equipment $14,550 5. Depreciation on the company's office building was $14,300. 6. Manufacturing overheadrate is 90% of direct lab rcost. 7. Jobs completed during the quarter: A20, A21, and A23. Instructions Prepare entries to record the operations summarized above. (Prepare a schedule showing the individual cost elements and total cost for each job in item 7.)

Answer 1

Answer

	Account Titles	Debit	Credit
1	Raw Materials Inventory	192000
	Accounts Payable		192000
	(To record materials purchased.)
	Factory Labor	87300
	Factory Wages Payable		87300
	(To record factory wages incurred.)
2	Work in Process Inventory	153530
	Manufacturing Overhead	4470
	Raw Materials Inventory		158000
	(To record material requisitioned.)
3	Work in Process Inventory	80000
	Manufacturing Overhead	7300
	Factory Labor		87300
	(To record factory labor used.)
4	Manufacturing Overhead	49500
	Accounts Payable		49500
5	Manufacturing Overhead	14550
	Accumulated Depreciation--Equipment		14550
6	Work in Process Inventory	72000
	Manufacturing Overhead		72000
	(80000 x 90%)
7	Finished Costs Inventory	305530
	Work in Process Inventory		305530

NOTE.

Job	Direct Material	Direct Labor	Manufacturing Overhead	Total
A20	35240	18000	16200	69440
A21	42920	22000	19800	84720
A22	36100	15000	13500	64600
A23	39270	25000	22500	86770
Total				305530

manufacturing overhead = Direct labor * 90 %