Question

The following manufacturing costs were incurred: 1. Materials purchased on account were $256,900, and wages for factory workers were $111,280. 2. Materials requisitioned and factory labour used by each job were as follows: Job Number A1 A2 A3 Materials $43,580 32,990 40,470 38,840 3,130 159,010 Factory Labour $28,800 34,200 18,000 25,100 5,180 111,280 A4 General factory use Total 3. Manufacturing overhead costs incurred on account were $69,900. 4. Depreciation on machinery and equipment was $16,910. 5. The manufacturing overhead rate is 75% of the direct labour cost. Prepare entries for manufacturing costs and assigning costs to production. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Raw Materials Inventory 256900 256900 Accounts Payable (To record purchases of raw materials on account) Service Salaries and Wages 111280 111280 Factory Wages Payable (To record factory labour costs) Manufacturing Overhead (To record manufacturing overhead costs) (To assign factory labour to production) (To assign raw materials to production) (To assign overhead to production)

Answer 1

Account Titles and Explanation	Debit	Credit
Raw Materials Inventory	256900
Accounts Payable		256900
(To record purchases of raw materials on account)
Factory labour	111280
Factory Wages Payable		111280
(To record factory labour costs)
Manufacturing Overhead	86810
Accounts Payable		69900
Accumulated Depreciation		16910
(To record manufacturing overhead costs)
Work in Process inventory	106100		=28800+34200+18000+25100
Manufacturing Overhead	5180
Factory labour		111280
(To assign factory labour to production)
Work in Process inventory	155880		=43580+32990+40470+38840
Manufacturing Overhead	3130
Raw Materials Inventory		159010
(To assign raw materials to production)
Work in Process inventory	79575		=106100*75%
Manufacturing Overhead		79575
(To assign overhead to production)