Question

10. set? cribe how a job order cost system can be used for professional service businesses. ic Exercises SHOW WE ROW BE 16.1 Issuance of materials Obj. 2 On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. BE 16-2 Direct labor costs Obj. 2 During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May. SHOW ME HEN SHOW ME HIM BE 16-3 Factory overhead costs Obj. 2 During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, 86,600; utilities cost, $4,800; and factory depreciation, $9,000. Journalize the entry to record the factory overhead incurred during May BE 16-4 Applying factory overhead Peroan Coman estimates that total factorv wwerhead costs will be $620.000 for the vear. Direct Obj. 2 Next

Answer 1

1.

Date	Account titles and Explanation	Debit ($)	Credit ($)
May	07	Materials (10,000 X 8 = 80,000)	80,000
	Accounts Payable		80,000
	(Materials purchased during May)
May	31	Work in process (7,500 X 8) + (1,480 X 5)	67,400
	Materials		67,400
	(Materials issued during May)

2.

Date	Account titles and Explanation	Debit ($)	Credit ($)
May		Work in process (2,500 X 28) + (3,000 X 24)	142,000
	Wages Payable		142,000
	(Record flow of labor cost)

3.

Date	Account titles and Explanation	Debit ($)	Credit ($)
May		Factory overhead($8,800+$6,600+$4,800+$9,000)	29,200
	MaterialsAccumulated depreciation - Factory		8,800
	Wages payable		6,600
	Utilities payable		4,800
	Accumulated depreciation - Factory		9,000
	(Record of factory overhead incurred)