Question

Exercise 20-08 Blossom 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 $196,600, and factory wages incurred $94,100. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 A21 A22 A23 General factory use $37,140 44,720 36,500 41,870 4,770 $165,000 $19,700 22,900 16,900 27,000 7,600 $94,100 3. Manufacturing overhead costs incurred on account $51,500. 4. Depreciation on factory equipment $16,150. 5. Depreciation on the company's office building was $14,800. 6. Manufacturing overhead rate is 80% 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 A20 $ A23

Answer 1

A20 A21 A22 A23 Direct Materials $ 37,140 $ 44,720 $ 36,500 $ 41,870 Manufacturing Direct Labor Overhead Total $ 19,700 $ 15,760 ($19,700*80%) $ 72,600 $ 22,900 $ 18,320 ($18,320*80%) $ 85,940 $ 16,900 $ 13,520 ($13,520*80%) $ 66,920 $ 27,000 $ 21,600 ($27,000*80%) $ 90,470 $3,15,930

No Account Title and Explanation Debit Credit $ 1,96,600 $ 1,96,600 1 Raw Materials Inventory Accounts Payable (To record materials purchases) Factory Labor Factory Wages Payable (To record factory wages) $ 94,100 $ 94,100 $ $ 1,60,230 4,770 $ 1,65,000 2 Work in Process Inventory Manufacturing Overhead Raw Materials Inventory (To record materials put into production) Work in Process Inventory Manufacturing Overhead Factory Labor (To record labor put into production) $ $ 86,500 7,600 $ 94,100 $ 51,500 3 Manufacturing Overhead Accounts Payable $ 51,500 $ 16,150 4 Manufacturing Overhead | Accumulated Depreciation $ 16,150 $ 14,800 5 Depreciation Expense Accumulated Depreciation $ 14,800

$ 61,120 6 Work in Process Inventory Manufacturing Overhead $ 61,120 $ 2,49,010 7 Finished Goods Inventory Work In Process Inventory $ 2,49,010