Question

Problem 11-6A (Part Level Submission) Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 2,000 units of Product B was received. The standard cost of one unit of Product B is as follows. 3 pounds at $1.30 per pound $3.90 Direct materials Direct labor 1.30 hour at $10.00 per hour 13.00 2 hours (variable $4.50 per machine hour; fixed $2.60 per machine hour) 14.20 Overhead $31.10 Standard cost per unit Normal capacity for the month was 4,100 machine hours. During January, the following transactions applicable to Job No. 12 occurred 1 Purchased 6,400 pounds of raw materials on account at $1.36 per pound 2. Requisitioned 6,400 pounds of raw materials for Job No. 12 3. Incurred 2,700 hours of direct labor at a rate of $9.95 per hour 4 Worked 2,700 hours of direct labor on Job No. 12 5. Incurred manufacturing overhead on account $30,600 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed Completed Job No. 12 8. Billed customer for Job No. 12 at a selling price of $180,000 Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit No. Account Titles and Explanation Debit Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. (To record sales.) To record cost of goods sold.) Post to the job order cost accounts. (Post entries in the order of journal entries presented in the previous part.) Raw Materials Inventory Factory Labor Manufacturing Overhead Materials Price Varlance Materials Quantity Variance Labor Price Variance Labor Quantity Variance Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Prepare the entry to recognize the total overhead variance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Credit Debit Account Titles and Explanation

Answer 1

ANS :-

S.No.	Accounts titles and Explanation	Debit ($)	Credit ($)
1.	Raw materials inventory (6,400*$1.30)	8320
	Materials price variance [6,400*($1.36-$1.30)]	384
	Accounts payable		8,704
2.	Work in process inventory (2,000*3*$1.30)	7,800
	Materials quantity variance [(6,400-6,000)*$1.30]	520
	Raw materials inventory		8,320
3.	Factory labor(2700*$13)	35,100
	Labor price variance [(13-9.95)*2,700]		8,235
	Factory wages payable (2,700*$9.95)		26,865
4.	Work in process inventory (2,000*$13)	26,000
	Labor quantity variance [(2,700-2,000)*$13]	9,100
	Factory labor		35,100
5.	Manufacturing overhead	30,600
	Accounts payable		30,600
6.	Work in process inventory [(2,000*2)*(4.50+2.60)]	28,400
	Manufacturing overhead		28,400
7.	Finished goods inventory	62,200
	Work in process inventory (2,000*$31.10)		62,200
8.	Accounts receivable	180,000
	Sales		180,000
	(To record sales)
	Cost of goods sold	62,200
	Finished goods inventory (2,000*$31.10)		62,200
	(To record cost of goods sold)