Question

I meed some help with this. The first picture is the explanation and you put your answers on the second picture.
Cool Sun produces awnings and screens. Cool Sun uses job order costing. Prepare journal entries to reflect the following transactions. (HINT: Calculate the manufacturing overhead costs for one month only) Aug. 4, 2015 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4,000, on accounf Transferred 60% of the raw materials purchased on August 4 into production for Job No. 234. ($500 is indirect material). Aug. 6, 2015 Labor costs for Job No. 234 for production workers include 150 hours at $20 per hour. Labor costs for general maintenance workers include 15 hours at $50 an hour. Aug. 30, 2015 Aug. 31, 2015 Factory overhead is applied at 1 10% of the direct labor cost Aug. 31, 2015 Depreciation on the factory equipment is determined using the straight line method. The equipment was purchased seven years ago for $60,000. It has a 10-year life and no salvage value. Aug. 31, 2015 The company purchased a one-year property insurance policy for the factory and equipment for $4,800 on January 1. The policy premium was originally debited to Prepaid Insurance. Property Taxes on the factory are $3,600 for the year. Aug. 31, 2015 Aug. 31, 2015 Aug. 31, 2015 Aug. 31, 2015 Factory utilities are $1,000 for the month of August Transferred Job No. 234 with total assigned costs to finished goods Sold and delivered the completed Job No. 234 to a customer for a 200% markup over cost, Aug. 31, 2015 Close out the manufacturing overhead account

Answer 1

Date	Account Titles and Explanation	Debit	Credit
04-Aug	Raw materials inventory	4000
	Accounts payable		4000
	(To record purchase of raw materials)
06-Aug	Work in process inventory	1900
	Manufacturing overhead	500
	Raw materials inventory (60% x $4000)		2400
	(To transfer raw materials to production)
30-Aug	Work in process inventory (150 x $20)	3000
	Manufacturing overhead (15 x $50)	750
	Cash		3750
	(To pay and allocate factory salaries)
31-Aug	Work in process inventory	3300
	Manufacturing overhead (110% x $3000)		3300
	(To apply overhead at predetermined overhead rate)
31-Aug	Manufacturing overhead ($60000 x 1/120)	500
	Accumulated depreciation-factory equipment		500
	(Allocate depreciation)
31-Aug	Manufacturing overhead ($4800 x 1/12)	400
	Prepaid insurance		400
	(Allocate insurance on factory property)
31-Aug	Manufacturing overhead ($3600 x 1/12)	300
	Property taxes payable		300
	(Allocate property taxes on factory property)
31-Aug	Manufacturing overhead	1000
	Utilities payable		1000
	(Incur utilities on factory)
31-Aug	Finished goods inventory ($1900 + $3000 + $3300)	8200
	Work in process inventory		8200
	(Transfer Job No. 234 to finished goods)
31-Aug	Accounts receivable	24600
	Cost of goods sold	8200
	Sales revenue*		24600
	Finished goods inventory		8200
	(To record sale of finished awning)
31-Aug	Cost of goods sold	150
	Manufacturing overhead**		150
	(Close out manufacturing overhead account)

Working:

*Cost of job no. 234	8200
Markup @ 200%	16400
Sales price $	24600
**Manufacturing overhead incurred	3450
Manufacturing overhead applied	3300
Underapplied overhead $	150