Question

Problem 20-01A a, c, d1, b, d2, e-h (Part Level Submission) (Video)

Blossom Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,600, direct labor $14,760, and manufacturing overhead $19,680. As of January 1, Job 49 had been completed at a cost of $110,700 and was part of finished goods inventory. There was a $18,450 balance in the Raw Materials Inventory account.

During the month of January, Blossom Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $150,060 and $194,340, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $110,700 on account.
2.		Incurred factory labor costs of $86,100. Of this amount $19,680 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $20,910; indirect labor $24,600; depreciation expense on equipment $14,760; and various other manufacturing overhead costs on account $19,680.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$12,300		$6,150
51		47,970		30,750
52		36,900		24,600

(c) Your answer is correct. Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory 110,700 Accounts Payable 110,700 (2) Factory Labor 86,100 Factory Wages Payable 66420 Employer Payroll Taxes Payable 19,680 (3) Manufacturing Overhead 79950 Raw Materials Inventory 20,910 24,600 Factory Labor Accumulated Depreciation- Equipment 14,760 Accounts Payable 19,680

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary.

Answer 1

Solution:

16:56 O = Excel Poo-1.1.xlsx File view Edit Cell Insert Data Draw Border Format Cells Table Style Merge W Font Гc Alignment p Fill Color E Number F H ou AwNH Job No. 50 Date Beg. Jan. Direct Materials Direct Labor Manufacturing Overhead (120%) $24,600 $14,760 $19,680 $12,300 $6,150 $7,380 $36,900 $20,910 $27,060 B Cost Of Completed job Direct Material Direct Labor Manufacturing Overhead Total Cost $36,900 $20,910 $27,060 $84,870 13 14 15 16 17 18 19 20 Job No. 51 Date Jan. Direct Materials Direct Labor Manufacturing Overhead $47,970 $30,750 $47,970 $30,750 $36,900 $36,900 22 24 25 26 27 Cost Of Completed job Direct Material Direct Labor Manufacturing Overhead Total Cost $47,970 $30,750 $36,900 $115,620 28 29 Job No. 52 Date Jan. 31 Direct Materials Direct Labor Manufacturing Overhead $36,900 $24,600 $29,520 36 37 Sheet127 Sheet119 Sheet102 (3) Sheet128 She