Question

CH 2 HW Saved Help Save & Exit Submit Check my work 00 Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $231,250 and total machine hours at 62,500. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: 1.5 points Direct materials used Direct labor Machine hours Job 101 Job 102 Job 103 Total $ 10,900 $ 8,000 $ 5,500 $ 24,400 $ 16,900 $ 6,400 $ 4,300 $ 27,600 2,000 hours 2,700 hours 1,100 hours 5,800 hours eBook Print References Job 101 was completed and sold for $50,600. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $16,660. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet < A B C D > Mc Graw Hill Education < Prev 8 of 10 Next >

Answer 1

Transaction	General Journal	Debit	Credit
1	Finished goods inventory	$ 24,390
	Work in process inventory		$ 24,390
	(To record the Completion of Finished goods inventory )
2a	Cost of Goods Sold	$ 35,200
	Finished Goods Inventory		$ 35,200
	(To record the Cost of Goods Sold for Job 101
2b	Cash	$ 50,600
	Sales Revenue		$ 50,600
	(To record the Cash recived )
3	Manufacturing overhead ( $ 21,460 (-) $ 16,660 )	$ 4,800
	Cost of Goods Sold		$ 4,800
	(To record the transfer of Manufacturing overhead )

Workings :
Predetermined overhead rate        = Est. Manfacturing OH Costs / Est. Machine hours         =   $ 231,250/ 62,500         =   $ 3.7 per MH
	Job 101	Job 102	Job 103	Total
Direct materials used	$ 10,900	$ 8,000	$ 5,500	$ 24,400
Direct labor	$ 16,900	$ 6,400	$ 4,300	$ 27,600
Manufacturing overhead	$ 7,400 ( $ 3.70 x 2,000 )	$ 9,990 ( $ 3.70 x 2,700 )	$ 4,070 ( $ 3.70 x 1,100 )	$ 21,460
Total	$ 35,200	$ 24,390	$ 13,870	$ 73,460
Status	Sold	Finished	Work in Process