Question

Exercise 15-08 (Video) Crane 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 $193,000, and factory wages incurred $87,800. 2. Materials requisitioned and factory labor used by job: Job Number Materials A20 A21 A22 $36,240 43,920 36,200 40,270 4,570 $ 161,200 Factory Labor $18,100 22,100 15,100 25,100 7,400 $87,800 A23 General factory use 3. Manufacturing overhead costs incurred on account $49,600. 4. Depreciation on factory equipment $15,550. 5. Depreciation on the company's office building was $14,300. 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 $ $ $ $ A21 A23 $ Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Answer
Computation of Jobs completed
Job	Direct Material	Direct Labor	Overhead	.Total
			( 80% * DL Cost)
A20	$                36,240	$              18,100	$                14,480	$          68,820
A21	$                43,920	$              22,100	$                17,680	$          83,700
A23	$                40,270	$              25,100	$                20,080	$          85,450
Total				$       2,37,970

General Journal
Crane Printing Corp.
S. No.	Account Titles and Explanation	Debit	Credit
1	Raw Materials Inventory	$         1,93,000
	To, Accounts Payable		$         1,93,000
	( To Record purchase of Material)
	Factory Labor	$            87,800
	To, Factory Wages Payable		$            87,800
	(To Record Wages Expense)
2	WIP Inventory	$         1,55,730
	Manufacturing Overhead	$              5,470
	To, Raw Materials Inventory		$         1,61,200
	(To Record material trf to production Department)
	WIP Inventory	$            80,400
	Manufacturing Overhead	$              7,400
	To, Factory Labor		$            87,800
	(To Record Wages Cost trf to the production Department)
3	Manufacturing Overhead	$            49,600
	To, Accounts Payable		$            49,600
	(To Record Overhead Incurred)
4	Manufacturing Overhead	$            15,550
	To, Accumulated Depreciation-Equipment		$            15,550
	(To Record Depreciation Expense on Equipment)
5	Depreciation Expense	$            14,300
	To, Accumulated Depreciation-Buildings		$            14,300
	(To Record Depreciation Expense on Building)
6	Work In Process Inventory ($80,400*80%)	$            64,320
	To, Manufacturing Overhead		$            64,320
	(To Record Applied Manufacturing Overhead)
7	Finished Goods Inventory	$         2,37,970
	To, Work In Process Inventory		$         2,37,970
	(To Record finished goods inventory)