Question

Che Job costing A job-costing syste ing system has a separate job-cost record for each job. A summary of the job-cost card is typically found in a subsidiary ledger. The general ledger Rocount Work-in-Process Control control presents the total of these separate job cost records pertaining to all unfinished jobs. The job-cost records and Work-in-Process Control account track ob costs from when ob start until they are complete. When jobs are completed or sold, they are recorded in the finished-goods inventory records of jobs in the subsidiary ledger. The general leder account Finished Goods Control records the total of these separate job-cost records for all jobs completed and subsequently for all jobs sold. General ledger accounts with Control in their titles (for example, Materials Control and Accounts Payable Control) have underlying subsidiary ledgers that contain additional details such as each type of material in inventory and individual suppliers Robinson must pay. Some companies simultaneously make entries in the general ledger and subsidiary ledger accounts, Others, such as Robinson, simplify their accounting by making entries in the subsidiary ledger when transactions occur and entries in the general ledger less frequently, often on monthly basis, only when monthly financial statements are prepared. Under normal costing, manufacturing overhead allocated or manufacturing overhead applied is the amount of manufacturing overhead costs allocated to individual jobs based on the budgeted rate (S40 per direct manufacturing labor-hour) multiplied by the actual quantity of the allocation base used for each job. (The total actual direct manufacturing labor-hours across all jobs in February 2017 total 2,000.) Manufacturing overhead allocated contains all manufacturing overhead costs assigned to jobs using a cost-allocation base because overhead costs cannot be traced specifically to jobs in an economically feasible way. Actual overhead costs incurred throughout the month are added (debited) to the Manufacturing Overhead Control account. These costs are not debited to Work-in-Process Control because, unlike direct costs, they cannot be traced to individual jobs. Manufacturing overhead costs are added (debited) to individual jobs and to Work-in-Process Control only when manufacturing overhead costs are allocated. At the time these costs are allocated, Manufacturing Overhead Control is, in effect, decreased (credited) via its contra account, Manufacturing Overhead Allocated. Manufacturing Overhead Allocated is referred to as a contra account because the amounts debited to it represent the amounts credited to the Manufacturing Overhead Control account. Having Manufacturing Overhead Allocated as a contra account allows the job-costing! system to separately retain information about the manufacturing overhead costs the company has incurred in the Manufacturing Overhead Control account) as well as the amount of manufacturing overhead costs it has allocated in the Manufacturing Overhead Allocated account).

Answer 1

o purchases of on credit materials Cdirect and indirect) $ 90 Amtch) Cr. Dr Description Dr. Purchase Al Maten al contro Account payable 910 in direct material, $4 Amt 1) ③ usage of direct materials found ID8 Description Dr Work in Progress Control 180 Manufacturing Overhead C . - Control - Material control 3 Manufacturing and indirect payroll for rebruary, direct labor $40 labor $15, paid in cash Dr Amic Co Dr. 40 Description wook in progress Manufacturing Or. teals Control Cash Control

Amt & Dr Particular Cr. 72 Manufacturing Overhead Lontod Cash Control Depreciation control