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During February, Charm Inc. worked on two jobs with the following data:

	Job 13	Job 12
Units in each job	100 units	200 units
Units sold	100 units	----
Materials requisitioned	$5,230	$3,970
Direct labor hours	900 hrs.	1,220 hrs.
Direct labor cost	$13,500	$18,300

Overhead is assigned on the basis of direct labor hours at a rate of $8. During February, Job 12 was completed and transferred to Finished Goods. Job 13 is the only unfinished job at the end of the month.

A. Prepare the journal entries for requisitioning all materials used during the month.

___________________. _____

___________________. _____

B. Prepare the journal entries for direct labor for the month. Assume the workers have not been paid yet.

___________________. _____

___________________. ______

Answer 1

Calculation of per unit cost of Job 12 and ending WIP balance
	Job 12	Job 13	Total
Direct Material	$            3,970	$             5,230	$          9,200
Direct Labor	$     18,300	$      13,500	$        31,800
Manufacturing OH	$            9,760	$             7,200	$        16,960
Total cost	$          32,030
Cost in WIP		$          25,930
No. of units produced	$                100
Cost per Unit	$                320
Journal Entries :
Particulars	Debit	Credit
Work in process	$            9,200
Raw matrial Inventory		$             9,200
Work in process	$          31,800
Wages payable		$          31,800
Work in Process	$          16,960
Manufacturing Overheads		$          16,960
Finished goods Inventory	$          32,030
Worrk in process		$          32,030