Question

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, $7,900 of indirect materials and $13,200 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	$10,900	Direct materials	$18,300
Direct labor	8,900	Direct labor	17,700
Factory overhead	5,785	Factory overhead	11,505
Total	$25,585	Total	$47,505

Job 303		Job 304
Direct materials	$26,000	Direct materials	$13,700
Direct labor	16,000	Direct labor	12,300
Factory overhead	—	Factory overhead	—

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles. a. Direct and indirect materials used. b. Direct and indirect labor used. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302.

CHART OF ACCOUNTS
Old School Publishing Inc.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles. a. Direct and indirect materials used. b. Direct and indirect labor used. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302.

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JOURNAL

Score: 2/125

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer 1

			job 301	job 302	job 303	job 304	total
Direct materials			10,900	18,300	26,000	13,700	68,900
direct labor			8,900	17,700	16,000	12,300	54,900
factory overhead			5,785	11505	10400	7995	35,685
total			25,585	47,505	52,400	33,995	159,485
		overhead rate = 5785/8900
			0.65
			65%
	journal Entries
	Accounting titles & Explanations					Debit	Credit
a)	Work in process inventory					68,900
	Factory overhead					7,900
	Raw materials inventory						76,800
b)	Work in process inventory					54,900
	Factory overhead					13,200
	Factory wages payable						68,100
c)	Work in process inventory					35,685
	Factory overhead						35,685
d)	Finished goods inventory					73,090
	work in process inventory						73,750