Question

Completed

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,000 of indirect materials and $12,400 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301 Job 302

Direct materials $10,000 Direct materials $20,000

Direct labor 8,000 Direct labor 17,000

Factory overhead 6,000 Factory overhead 12,750

Total $24,000 Total $49,750

Job 303 Job 304

Direct materials $24,000 Direct materials $14,000

Direct labor 18,000 Direct labor 12,000

Factory overhead — Factory overhead —

Journalize the summary entry to record each of the following operations for January (one entry for each operation):

a. Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank.

Work in Process

Factory Overhead

Materials

Answer 1

Journal entry

No	General Journal	Debit	Credit
a	Work in process (10000+20000)	30000
	Factory overhead	8000
	Materials		38000