Question

Question 4 of 8 -/5 E Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production 1. 2 Materials purchased on account $193,700, and factory wages incurred $91,000. Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 A23 General factory use Materials $36,740 44,120 37,900 40,770 5.170 $164,700 Factory Labor $19,300 22,200 15,300 26,700 7.500 $91,000 3. 4. 5. 6. 7. Manufacturing overhead costs incurred on account $53,500. Depreciation on factory equipment $16,050. Depreciation on the company's office building was $15,300. Manufacturing overhead rate is 88% of direct labor cost. 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

Answer 1

Solution.

	Account Titles	Debit	Credit
1	Raw Materials Inventory	193,700
	Accounts Payable		193,700
	(To record materials purchased.)
	Factory Labor	91,000
	Factory Wages Payable		91,000
	(To record factory wages incurred.)
2	Work in Process Inventory [material=AS20+A21+A22+A23]	159,530
	Manufacturing Overhead	5,170
	Raw Materials Inventory		164,690
	(To record material requisitioned.)
3	Work in Process Inventory [FACTOR LABOUR=A20+A21+A22+A23]	83,500
	Manufacturing Overhead	7,500
	Factory Labor		91,000
	(To record factory labor used.)
4	Manufacturing Overhead	53,500
	Accounts Payabl		53,500
5	Manufacturing Overhead	16,050
	Accumulated Depreciation--Equipment		16,050
6	Work in Process Inventory	73,480
	Manufacturing Overhead		73,480
	(83,500 x 88%)
7	Finished Costs Inventory	316,510
	Work in Process Inventory		316,510

NOTE.

Job	Direct Material	Direct Labor	Manufacturing Overhead(DIRECT LABOUR*88%)	Total
A20	36,740	19,300	16,984 [19300*0.88]	73,024
A21	44,120	22,200	19,536 [22200*0.88	85,856
A22	37,900	15,300	13,464 [15300*0.88]	66,664
A23	40,770	26,700	23,496 [26700*0.88]	90966
Total				316,510

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