1. Materials purchased on account $194,400, and factory wages incurred $90,400.

Question

1. Materials purchased on account $194,400, and factory wages incurred $90,400. 2. Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 A23 General factory use Materials Factory Labor $36,540 45,720 36,800 40,570 4,870 $164,500 $18,100 22,800 15,800 26,200 7,500 $90,400 3. Manufacturing overhead costs incurred on account $50,900 4. Depreciation on factory equipment $16,150 5. Depreciation on the company's office building was $15,000. 6. Manufacturing overhead rate is 83% 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 Debit Credit No. Account Titles and Explanation (1) Raw Materials Inventory 94,400 194,400 Accounts Payable (To record materials purchases) Factory Labor 90,100 90,4 Factory Wages Payable (To record factory wages (2) Work in Process Inventory 6,540 Manufacturing Overhead 45,720 Raw Materials Inventory

Explanation / Answer

Job cost sheet A20 A21 A22 A23 Total Material cost 36540 45720 36800 40570 159630 Labor cost 18100 22800 15800 26200 82900 Overheads cost@83% of DLC 15023 18924 13114 21746 68807 Total cost 69663 87444 65714 88516 311337 Journal entries: S.no. Accounts title and explanation Debit $ Credit $ 1 Raw material inventory Dr. 194400     Accounts payable 194400 Factory Labor Dr. 82900    Factory Wages payable 82900 2 Work in process inventory Dr. 159630 Manufacturing Overheads Dr. 4870     Raw material Inventory 164500 Work in process inventory Dr. 82900 Manufacturing Overheads Dr. 7500       Factory Labor 90400 3 Manufacturing Overheads Dr. 50900      Accounts payable 50900 4 Manufacturing Overheads Dr. 16150    Accumulated depreciation-Factory Equipment 16150 5 Admin overheads Dr. 15000     Accumulated depreciation-Office building 15000 6 Work in process inventory Dr. 68807     Manufacturing Overheads 68807 7 Finished Goods inventory Dr. 245623      Work in process inventory 245623

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