Darden Manufacturing uses a job order cost accounting system. On April 1, the co

Question

Darden Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,600 and two jobs in process: Job No. 221, $3,600, and Job No. 222, $4,000. During April, a summary of source documents reveals the following: For Materials Requisition Slips Labor Time Tickets Job. No. 221 $2,200 $3,600 222 1,700 3,200 223 2,400 2,900 224 2,100 2,800 General use 600 400 Totals $9,000 $12,900 Darden applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 221 is completed during the month. Instructions Prepare summary journal entries to record the raw materials requisitioned, factory labor used, the assignment of manufacturing overhead to jobs, and the completion of Job No. 221.

Calculate the balance of the Work in Process Inventory account at April 30.

Explanation / Answer

Journal entries: Accounts title and explanations Debit $ Credit $ Work in Process Inventory Dr. (2200+1700+2400+2100) 8400 Factory Overheads Account Dr. 600      Raw material Inventory 9000 Workin Process Inventory Dr, (3600+3200+2900+2800) 12500 Factory Overheads Account Dr. 400      Factory Wages 12900 Work in Process Inventory Dr. (12500*60%) 7500      Factory Overheads Account 7500 Finished Goods Inventory Dr. 11,560      Work in process inventory 11560 WORK IN PROCESS INVENTORY-REFINING Balance 7,600 Finished Goods Inventory 11,560 Raw material Inv. 8,400 Wages Payable 12,500 Manufacturing Overheads 7,500 Balance 24,440 Note: Cost of Job 221: beginning balance 3600 Add: material incurred 2200 Add: labour cost 3600 Add: OH applied (3600*60%) 2160 Total cost of Job No. 221 11560

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