Question

4:45 0 ALTEA 18% Module 2 Assignment Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,400 of indirect materials and $13,700 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $10,100 Direct materials $19,000

Answer 1

No. Credit a) Debit $ 65,500 $ 8,400 Account titles & Explanations Work in process inventory Factory overhead Raw materials inventory (To record the direct and indirect materials issued) $73,900 b) Work in process inventory Factory overhead wages payable $ 52,800 $ 13,700 $ 66,500 (To record the direct and indirect labor used) c) $ 36,960 Work in process inventory ($52,800*70%) Factory overhead (To record the factory overhead applied) $36,960 $ 71,090 $ 71,090 Finished goods inventory ($24,550 + $46,540) Work in process inventory (To record the completion of Jobs 301 and 302) Note: Overhead rate = $5,950/8,500 = 70% (or) Overhead rate = $11,340/$16,200 = 70%

Entry a) work in process inventory = $10,100 + $19,000 + $23,700 + $12,700 = $65,500

Entry b) work in process inventory = $8,500 + $16,200 + $16,300 + $11,800 = $52,800