Question

-73,750 I ana Jobs completed Obj. 2 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 of indirect labor were used during the month. The cost sheets for the four jobs entering produc- tion during the month are as follows, in summary form: Job 301 Direct materials Direct labor Factory overhead Total 8,000 6,000 $24,000 Job 302 Direct materials Direct labor Factory overhead Total $20,000 17,000 12,750 $49,750 Job 303 Job 304 Direct materials $24,000 Direct materials $14,000 Direct labor 18,000 Direct labor 12,000 Factory overhead Factory overhead Journalize the summary entry to record each of the following operations for January (one entry for each operation): 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.

Answer 1

			job 301	job 302	job 303	job 304	total
Direct materials			10,000	20,000	24,000	14,000	68,000
direct labor			8,000	17,000	18,000	12,000	55,000
factory overhead			6,000	12750	13500	9000	41,250
total			24,000	49,750	55,500	35,000	164,250
		overhead rate = 6000/8000
			0.75
			75%
	journal Entries
	Accounting titles & Explanations					Debit	Credit
a)	Work in process					68,000
	Factory overhead					8,000
	Materials						76,000
b)	Work in process					55,000
	Factory overhead					12,400
	Factory wages payable						67,400
c)	Work in process					41,250
	Factory overhead						41,250
d)	Finished goods					73,750
	work in process						73,750