Question

© Data Table Date 9/02 9/03 Labor Time Record No. 655 656 Description 10 hours @ $18 per hour 20 hours @ $15 per hour Amount $ 180 Materials Requisition NO. Amount $ 372 Date 9/02 9/02 9/03 63 64 Description 31 lbs. polycarbonate plastic @ $12 per lb. 25 lbs. acrylic plastic @ $27 per lb. 3 lbs. refined aluminum @ $45 per lb.

Answer 1

Predetermined overhead rate based on DLC: Esti. Overhead/Esti. DLC
504000 / 420000= $1.2 per $DLC
Req 1) Job cost record for Job 423:
Direct Materials			Direct Labor		Manufacturing Overhead allocated
Date	Req	amount	Lab. Time	Amount	DLC	Rate	Amount
2-Sep	63	372	10	180	180	1.2	216
2-Sep	64	675	20	300	300	1.2	360
3-Sep	74	135
Total		1182		480			576
Req 2) Journal Entries:
Date	Accounts	Debit $	Credit $
3-Sep	WIP - job 423	1182
	Materials		1182
	(direct materials used for job 423)
3-Sep	WIP - job 423	480
	Payroll		480
	(direct labor used for job 423)
3-Sep	WIP - job 423	576
	Manufacturing overhead		576
	(overheads allocated for job 423)
Req 3) Journal Entries:
Date	Accounts	Debit $	Credit $
3-Sep	Finished Goods - Job 423	2238
	WIP - job 423		2238
	(job 423 finished and transferred to FG)
3-Sep	Accounts Receivable	6240		5200*1.20
	Sales Revenue		6240
	(sale of job 423 on account)
3-Sep	Cost of goods sold	2238
	Finished Goods - Job 423		2238
	(COGS for sale of job 423 recorded)