Question

4. At the beginning of the year, factory overhead application rates were based on the following data: Stamping Plating Dept Dept. Estimated factory overhead for the year. ........... $145,000 $115,000 Estimated direct labor hours for the year.. 29,000 6,000 In October, the following transactions were recorded: a. Purchased the following materials and supplies on account: Material A.. 1,100 units @ $26 Material B 900 units @ $17 Material C............ 800 units @ $28 Factory Supplies............... $3,200 b. The following materials were issued to the factory: Job 905 Job 1001 Job 1002 Material A. 600 units 400 units Material B ..... 400 units 200 units Material C ............. 200 units 400 units Factory Supplies. $2,450 Customers' orders covered by Jobs 1001 and 1002 are for 1,000 and 500 units of finished product, respectively. Factory wages and office, sales, and administrative sala- ries are paid at the end of each month. (Assume FICA and federal income tax rates of 8% and 10%, respectively.) Record the company's liability for state and federal unemployment taxes. (Assume rates of 4% and 1%, respectively, and that none of the employees had reached the $8,000 limit.) Record the payroll distribution for October Stamping Dept. Plating Dept. Job 905 100 hr @ $9 300 hr @ $11 Job 100... 1,200 hr @ $9 300 hr @ $11 Job 1002 800 hr @ $9 Wages of s ervisors, custodial personnel, etc., totaled $9,500; administrativa salaries were $18,300. - during October

journalize A to C

Answer 1

friswer Date Particulars Ant (Din materials a/c Dr. 69500 69500 To accounts payable (To record the ma -terial Purchase) 52600 2456 work in process at Factory overhead alc To materials are 55050 Yeard Ton the materials requisitioned) payroll ak Dr 53300 42 by 5336 TO FILA tax payablo ale Το οριογι5 10ο tax payable ale To wages payable al ( 0%cord of tsages Polable) u 3706 25500 work in Process af Dr. 9500 factory overned al Do 18300 Dr 53300 salaries are το φαγδοη αε

Payroll dist (record of -ribution) usro Factory To Crecord overhead exp akor cash al overhead exp 4550 су 10 il tay exponge / 0 2379 2379 TO salaries record of alc salaries) I 42 by cash all TO FICA (record of Dr tax payable as payables) 42 by 233 (2 665 cash arc Do To federal unemployment tax Dajable are To stare unemployment tax payable acc Crecord employer payroll ). 2132