MANAGERIAL ACCOUNTING (ACCT 105) Assignment Gradebook ORION gnment Question 1 Th

Question

MANAGERIAL ACCOUNTING (ACCT 105) Assignment Gradebook ORION gnment Question 1 The following are the job cost related accounts for the law firm of Colaw Associates and their manufacturing equivalents: Law Firm Accounts Manufacturing Firm Accounts Raw Materials Factory Labor Manufacturing Overhead Work in Process Cost of Goods Sold Supplies Salaries and Wages Payable Operating Overhead y. Service Contracts in Process Cost of Completed Service Contracts Cost data for the month of March follow Purchased supplies on account $2,100 Issued supplies $3,200 (60% direct and 40% indirect). Assigned labor costs based on time cards for the month which indicated labor costs of $80,700 (80% direct and 20% indirect) 1. 2. 3. 4. Operating overhead costs incurred for cash totaled $48,700 5. Operating overhead is applied at a rate of 90% of direct labor cost. 6. Work completed totaled s84,400. Journalize the transactions for March. (Credit account titles are automatically indented when amount is entered. Do not indent manually. No. Account Titles and Explanation Debit Credit

Explanation / Answer

Journal Entries: Date Accounts Titles Debit $ Credit $ 1 Supplies 2100 Accounts Payable 2100 (being purchase of supplies on account) 2 WIP Inventory 1920 Manufacturing Overhead 1280 Supplies 3200 (being supplies issued ) 3 WIP Inventory 64560 Manufacturing Overhead 16140 Labor Payroll 80700 (being assignment of labor costs) 4 Operating overhead costs 48700 Cash 48700 (being overhead in cash) 5 WIP Inventory 58104 Operating overhead costs 58104 (being overhead applied) 6 Finished Goods Inventory 84400 WIP Inventory 84400 (being work completed transferred)

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