FOR 25 ASSIGNMENT POINTS.....Complete journal entry problem #3 below. Take speci
ID: 2414881 • Letter: F
Question
FOR 25 ASSIGNMENT POINTS.....Complete journal entry problem #3 below. Take special note of the beginning information at the top of the problem.
The work in process account has the following information already posted for the three jobs from the first week of work:
JOB 621 JOB 622 JOB 623
MATERIALS $2800 $3400 $1800
LABOR $2100 $2700 $1350
APPLIED F.O. $1680 $2160 $1080
__________________________________________________
TOTAL $6580 $8260 $4230
The following information is for the second week. Make all necessary entries.
a. Materials purchased and received, $22,000, terms n/45.
b. Materials requisitioned for production were $21,000. Of this amount $2400 were indirect and the rest was distributed as follows: JOB 621--$5300 JOB 622--$7400 JOB 623--$5900.
c. $600 of materials were returned to the storeroom. $200 was indirect and $400 was from JOB 622.
d. Materials returned to the vendor amounted to $800.
e. Gross payroll for the week was $60,000. Federal income tax withheld was $7000. Union dues were $500. FICA was withheld at the rate of 7.65%.
f.. The payroll was divided as follows:
direct labor.................55% {JOB 621--$6420, JOB 622--$8160, JOB 623--$18,420}
indirect labor..............20%
marketing salaries.......10%
admin. salaries............15%
g. Payroll taxes were recorded as follows: {13.85% is the total of the rates}
fut.............. .8%
sut.............. 5.4%
fica............ 7.65%
h. Factory overhead amounted to $5500. This included depreciation of $2000, $250 in expired insurance, and $3250 in unpaid bills. {hint.......no crediting expenses!}
i. Factory overhead was applied at the rate of 80% of the direct labor charges of letter "f". {don't forget to do it by the job}.
j. Jobs 621 and 622 were completed and transferred to finished goods. {this is a biggie...don't forget to add in the balances from last week!}
k. Both jobs were shipped and sold at a 40% profit {2 entries!}
Explanation / Answer
Job Direct Material Direct labor Applied Factory Overhead Total Production Cost 621 2,800 2,100 1,680 6,580 622 3,400 2,700 2,160 8,260 623 1,800 1,350 1,080 4,230 8,000 6,150 4,920 19,070 S.No Particulars L.F Amount ($) Amount ($) a. Material 22,000 Accounts Payable 22,000 (For Material Purchased transferred to Material account terms n/45) b. Work in Process-Job 621 5,300 Work in Process-Job 622 7,400 Work in Process-Job 623 5,900 Factory Overhead (Indirect Material) 2,400 Material 21,000 (Raw material an indirect material issued to production) c. Material 600 Work in Process-Job 622 400 Factory Overhead (Indirect Material) 200 (Raw material an indirect material returned to storeroom) d. Accounts Payable 800 Material 800 (For Material Purchased returned to Vendor) e. Payroll 60,000 Wages payable 60,000 (Payroll declared) e. Wages Payable 60,000 Cash 60,000 (Payroll paid) f. Work in Process-Job 621 6,420 Work in Process-Job 622 8,160 Work in Process-Job 623 18,420 Factory Overhead (Indirect Labor and Miscellaneous) 27,000 Payroll 60,000 (For wages transferred to accounts) f. Factory Overhead (Miscellaneous) 3,500 Accounts Payable 3,500 (For other expenses transferred) h. Factory Overhead (Depreciation) 2,000 Acc Dep -Building 2,000 (For Depreciation recorded) i. Work in Process-Job 621 1,498 Work in Process-Job 622 1,904 Work in Process-Job 623 4,298 factory Overhead 7,700 (Factory Overhead transferred to Work in process) j. Finished Goods Job 621 19,798 Finished Goods Job 622 25,324 Work in Process-Job 621 19,798 Work in Process-Job 622 25,324 (For Job 621 and 622 cost transferred to finished goods account) k. Accounts Receivable 63,171 Sales 63,171 (For goods of Job 621 and 622 sold recorded) k. Cost of goods sold 45,122 Finished Goods Job 621 19,798 Finished Goods Job 622 25,324 (For cost of goods sold recorded)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.