P lease show your work Entries for factory costs and jobs completed Law Publishi
ID: 2416709 • Letter: P
Question
Please show your work
Entries for factory costs and jobs completed
Law Publishing Inc. began printing operations on Jan. 1. Jobs 401 and 402 were completed during the month, and all costs applicable to them were recored on the related cost sheets. Jobs 403 and 404 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, $2,000 of indirect materials and 9000 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 401 Job 402
----------------------------------------- -----------------------------------
Direct materials $8,240 Direct materials $3,800
Direct labor 3,200 Direct labor 3,000
Factory overhead 2,240 Factory overhead 2,100
-------------- ---------------
Total $13,680 Total $8,900
=========== ===========
Job 403 Job 404
---------------------------------------- --------------------------------------
Direct materials $11,600 Direct materials $2,3550
Direct labor 3,500 Direct labor 500
Factory overhead 0 Factory overhead 0
Journalize the summary entry to record each of the following operations for Jan. (one entry for operations):
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 401 and 402.
Explanation / Answer
Journal entries
a) Direct and indirect materials used
Work in progress job 401 8240
Work in progress job 402 3800
Work in progress job 403 11600
Work in progress job 404 23550
To raw materials inventory job 401 8240
Raw materials inventory job 402 3800
Raw materials inventory job 403 11600
Raw materials inventory job 404 23550
(being use of direct materials recorded)
Indirect materials costs are apportioned on the basis of direct materials costs
Total Indirect materials costs = $ 2000
job 401 = $2000 * 8240/47190 = $ 349
Job 402 = $2000 * 3800/47190 = $ 161
Job 403 = $2000 * 11600/47190 = $492
Job 404 = $2000 * 23550/47190= $998
Factory overhead Job 401 $ 349
Factory overhead Job 402 $ 161
Factory overhead Job 403 $ 492
Factory overhead Job 404 $ 998
To Raw materials inventory $2000
b) Direct and indirect labour used
Work in progress job 401 3200
Work in progress job 402 3000
Work in progress job 403 3500
Work in progress job 404 500
To Wages job 401 3200
Wages job 402 3000
Wages job 403 3500
Wages job 404 500
Indirect labour costs are apportioned on the basis of direct labour
Job 401 = $9000 * 3200/10200 = $2824
Job 402 = $9000 * 3000/10200 = $2647
Job 403 = $9000 * 3500/10200 = $3088
Job 404 = $9000 * 500/10200 = $441
Factory overhead Job 401 $ 2824
Factory overhead Job 402 $ 2647
Factory overhead Job 403 $ 3088
Factory overhead Job 404 $ 441
To wages $9000
d) Completion of Job 401
Cost of sales a/c $16853
To work in progress a/c $16853
Completion of Job 402 Factory overhead Job 401 $ 349
Factory overhead Job 402 $ 161
Factory overhead Job 403 $ 492
Factory overhead Job 404 $ 998
Cost of sales a/c $11708
To Work in progress a/c $11708
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