Question

CALCULATE Exercise 2-8 (Video) Enos 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 $194,000, and factory wages incurred $91,800. 2. Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 A23 General factory use Materials $37,740 45,720 37,400 40,770 4,570 $166,200 Factory Labor $19,400 23,100 15,700 25,200 8,400 $91,800 3. Manufacturing overhead costs incurred on account $52,300. 4. Depreciation on factory equipment $15,950. 5. Depreciation on the company's office building was $14,900. 6. Manufacturing overhead rate is 846 of direct labor cost 7. Jobs completed during the quarter: A20, A21, and A23.

Answer 1

Workings: Job A20 Job Direct Materials $37,740 $45,720 $40,770 $124,230 Direct Labor $19,400 $23,100 $25,200 $67,700 Mfg. Overhead $16,296 $19,404 $21,168 $56,868 Total Cost $73,436 $88,224 $87,138 $248,798 A21 A20 A23 A21 A22 A23 Direct Materials $37,740 $45,720 $37,400 $40,770 $161,630 $4,570 $166,200 Totals Direct Labor $19,400 $23,100 $15,700 $25,200 $83,400 $8,400 $91,800 Mfg. Overhead $16,296 19404 13188 21168 $70,056 Total Cost $73,436 [Mfg. Overhead applied = $19400 x 84% = $16296] $88,224 [Mfg. Overhead applied = $23100 x 84% = $19404] $66,288 [Mfg. Overhead applied = $15700 x 84% = $13188] $87,138 [Mfg. Overhead applied = $25200 x 84% = $21168] $315,086 To WIP Gen. Use Totals

Journal Entries: Credit Credit No. 1) No. 4) Account Titles and Explanation Debit Manufacturing Overhead $15,950 Acumulated Depreciation-Equipment (To record depreciation on factory equipment) $194,000 Account Titles and Explanation Debit Raw Materials Inventory $194,000 Accounts Payable (To record materials purchased on credit) Factory Labor $91,800 Cash (To record factory wages) $15,950 $91,800 5) Operating Overhead $14,900 Acumulated Depreciation-Buildings (To record depreciation on office building) $14,900 2) 6) Work in Process Inventory $70,056 Manufacturing Overhead (To record mfg. overhead applied to production) [Ref: Workings] $70,056 $166,200 ($161630 + $4570] Work in Process Inventory $161,630 Manufacturing Overhead $4,570 Raw Materials Inventory (To record materials put into production) Work in Process Inventory $83,400 Manufacturing Overhead $8,400 Factory Labor (To record labor put into production) $91,800 ($83400 + $8400] 7) [As calculated] Finished Goods Inventory $248,798 Work in Process Inventory (To record cost of Jobs A20, A21 & A23 completed) $248,798 3) $52,300 Manufacturing Overhead Accounts Payable (To record mfg. overhead cost incurred) $52,300