Question

Required information Problem 2-2A Source documents, journal entries, overhead, and financial reports LO P1, P2, P3, P4 The following information applies to the questions displayed below.) Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded. Credit Debit $ 170,000 75,000 80,000 15,000 3,000 Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings Sales Cost of goods sold Factory overhead Operating expenses Totals $ 17,000 25,000 50,000 271,000 373,000 218,000 115,000 60,000 $ 736,000 $ 736,000 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. Materials requisition 21-3010: Materials requisition 21-3011: Materials requisition 21-3012: Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: $10,200 direct materials to Job 402 $18,600 direct materials to Job 404 $ 5,600 indirect materials $36,000 direct labor to Job 402 $ 23, 800 direct labor to Job 404 $ 8, 200 indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.

1. Direct materials costs to Work in Process Inventory.
2. Direct labor costs to Work in Process Inventory.
3. Overhead costs to Work in Process Inventory.
4. Indirect materials costs to the Factory Overhead account.
5. Indirect labor costs to the Factory Overhead account.

Required: Prepare journal entries to assign the above costs.

Answer 1

Preparation of journal entries to assign the above costs. Refer the below image for more details.

Requirement: prepare the journal entries to assign the above costs! Date credit Det 31 a $ 28800 particulars Debit Work in process inventory All Dr $ 28800 To Dow materials inventory (Being to record direct materials cost for jobs 402 4 404 [ 1620of $ 18600]) b. 59800 Work in process inventory ale or $59800 To Factory wages poyable (Being to record direct labor costs for Job 402 & 404 [s 36000 + $2380] ) $119600 c. $119600 Work in process inventory All Dr To Factory Overhead (Being allocation of overheads to jobs 402 & 404 at 2001, of direct labor Cast assigned). $5600 do $ 5600 factory overhead ALC Dr To Row materials inventory (Being Add cost of indirect materials to actual factory overhead) $8200 e . $8200 Factory overhead Ale or To Factory wages payable (Being Accrue indirect labor and assign it to actual factory overhead).