Question

Exercise 15-08 Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. Materials purchased on account $196,300, and factory wages incurred $94,100. 2. Materials requisitioned and factory labor used by job: Factory Labor Job Number A20 A21 A22 A23 General factory use Materials $36,540 44,220 38,100 42,070 5,170 $166,100 $19,500 23,300 16,800 26,600 7,900 $94,100 3. Manufacturing overhead costs incurred on account $52,700. 4. Depreciation on factory equipment $15,550. 5. Depreciation on the company's office building was $14,300. 6. Manufacturing overhead rate is 81% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23. Prepare a schedule showing the individual cost elements and total cost for each job in item 7. Direct Materials Direct Labor Manufacturing Overhead Job Total AZO §

Answer 1

Answer
	Account Titles	Debit	Credit
1	Raw Materials Inventory	$ 196,300
	Accounts Payable		$ 196,300
	(To record materials purchased.)
	Factory Labor	$    94,100
	Factory Wages Payable		$   94,100
	(To record factory wages incurred.)
2	Work in Process Inventory	$ 160,930
	Manufacturing Overhead	$      5,170
	Raw Materials Inventory		$ 166,100
	(To record material requisitioned.)
3	Work in Process Inventory	$    86,200
	Manufacturing Overhead	$      7,900
	Factory Labor		$   94,100
	(To record factory labor used.)
4	Manufacturing Overhead	$    52,700
	Accounts Payabl		$   52,700
5	Manufacturing Overhead	$    15,550
	Accumulated Depreciation--Equipment		$   15,550
6	Work in Process Inventory	$    69,822
	Manufacturing Overhead		$   69,822
	(86200 x 81%)
7	Finished Costs Inventory	$ 316,952
	Work in Process Inventory		$ 316,952

NOTE.
Job	Direct Material	Direct Labor	Manufacturing Overhead	Total
A20	$      36,540	$      19,500	$            15,795	$       71,835
A21	$      44,220	$      23,300	$            18,873	$       86,393
A22	$      38,100	$      16,800	$            13,608	$       68,508
A23	$      42,070	$      26,600	$            21,546	$       90,216
Total				$     316,952

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