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, 57,900 of indirect materials and $13200 of indirect labor were used during the month. The cost sheets for the tour jobs entering production during the month are as follows, in summary form Job 301 Job 302 Direct materials $10.900 Direct materials $18.300 Dect labor 3.900 Direct labot 17.00 Factory overhead 5,785 Factory Overhead 11.505 Total 525,585 Total 547,505 Job 303 Job 304 Direct materials $26000 Direct materials $13.700 16.000 Direct labor 12.300

Answer 1

Solution of 1st Question Credit 24 a) Account title & explanation Work In Process (10900+18300+26000+13700) Factory Overheads Materials (To record direct and indirect material used) Debit 68,900 7,900 76,800 29 b) 54,900 13,200 Work In Process (8900+17700+16000+12300) Factory Overheads Wages Payable (To record direct and indirect labor used) 68,100 34 c) 35,685 35,685 Work In Process Factory Overheads (To record factory overhead) Predetermined Overhead Rate; Job 301 Job 302 5785/8900 11505/17700 65% 65% Direct Labor Cost * Predetermined Factory Overhead rate 54900 *65% = 35685

45 d) 73,090 Finished goods(25585+47505) Work In Process (To record finished goods) 73,090 Solution of 2nd Question Credit Debit 381,000 Account title & explanation Work in Process-Refining Material (To record issue of materials) 381,000 149,000 Work in Process-Refining Wages Payable (To record payroll cost of labor) 149,000 96,200 Work in Process-Refining Factory Overhead-Refining (To record factory ovehead) 96,200 627,600 627,600 Work in Process-Sifting Work in Process-Refining (To record transfer of cost to sifting) (30000+381000+149000+96200-28600)