Question

Exercise 2-8 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 $196,700, and factory wages incurred $94,100. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 $37,040 $19,800 A21 45,020 22,600 A22 37,800 16,500 A23 41,370 27,100 General factory use 5,070 8,100 $166,300 $94,100 3. Manufacturing overhead costs incurred on account $51,600. 4. Depreciation on factory equipment $15,850. 5. Depreciation on the company’s office building was $14,300. 6. Manufacturing overhead rate is 86% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23. Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

		A20	A21	A22	A23	total
Direct materials		37040	45020	37800	41370	161230
Direct labor		19800	22600	16500	27100	86000
overhead		17028	19436	14190	23306	73960
total		73868	87056	68490	91776	321190
	Journal entries
S.no	Acccount titles & Explanations			Debit	Credit
1	Raw materials account			196700
	To accounts payable				196700
2	Factory wages			94100
	To Factory wages payable				94100
3	WIP inventory			161230
	Factory overhead			5070
	To Raw materials inventory				166300
3	WIP inventory			86000
	manufacturing overhead			8100
	To Factory wages payable				94100
4	Manufacturing overhead			51,600
	to Accounts payable				51,600
5	Manufacturing overhead			15,850
	to Accumulated depreciation				15,850
6	WIP inventory			73960
	to Manufacturing overhead				73960
7	Finished good inventory			252700
	to WIP inventory				252700
	(73868+87056+91776)