Question

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the total machine hours at 63,000. During the first month of operations, the company worked on three jobs and recorded the following a r, the company estimated its total manufacturing overhead cost at $245,700 and irect materials cost, direct labor cost, and machine hours for each job Job 101 Job 102 S 7,100 S 6,600 Job 103 5,100 5,500 Total Direct materials used Direct labor Machine hours S 10,900 S 17,000 23,100 S 29,100 1.400 hours 2,900 hours 1,000 hours 5,300 hours Job 101 was completed and sold for $51,600 Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,770 Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of g 3. Prepare the journal entry to transfer the balance of the Manuf (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Do not round your intermediate calculations.) sold for Job 101 d account to Cost of Goods Sold Journal entry worksheet Record the transfer of completed job 102 to finished goods inventory. Journal entry worksheet Record the transfer of the job sold to cost of goods sold account. Journal entry worksheet Record sales revenue and cash received Journal entry worksheet Record the transfer of the manufacturing overhead account balance to cost of goods sold.

Chapter 2. Job Order Costing

Answer 1

Answer 1
Journal entry
Account Titles	Debit	Credit
Finished Goods Inventory	$25,010.00
Work in process Inventory (Job 102)		$25,010.00
(to record transfer of Job 102 to Finished goods inventory)
Answer 2
Journal entries
Account Titles	Debit	Credit
Accounts Receivables	$51,600.00
Sales		$51,600.00
(to record sales)
Cost of goods sold	$33,360.00
Finished Goods Inventory (Job 101)		$33,360.00
(to record cost of goods sold of Job 101)
Answer 3
Journal entry
Account Titles	Debit	Credit
Manufacturing Overheads	$4,900.00
Cost of goods sold		$4,900.00
(to record overapplied overheads adjusted against cost of goods sold)
Working
Overhead application rate = Estimated manufacturing overhead cost / Total machine hours = $245700 / 63000 hours = $3.90 per machine hour
Total cost of completed Job 102
Direct Material used	$7,100.00
Direct Labour	$6,600.00
Overhead applied [2900 hours * $3.90]	$11,310.00
Total cost of completed Job 102	$25,010.00
Total cost of completed Job 101
Direct Material used	$10,900.00
Direct Labour	$17,000.00
Overhead applied [1400 hours * $3.90]	$5,460.00
Total cost of completed Job 101	$33,360.00
Calculation of overapplied or underapplied overhead
Applied Overheads [5300 hours * $3.90]	$20,670.00
Less : Actual overheads	$15,770.00
Overapplied Overheads	$4,900.00