Custom Cabinets Inc. manufactures goods on a job order basis. During the month o

Question

Custom Cabinets Inc. manufactures goods on a job order basis. During the month of November, three jobs were started. (There was no work in process at the beginning of the month.) Jobs 401 and 402 were completed and sold for $14,500 and $19,000, respectively, during the month; Job 403 was still in proces at the end of November. 2. The following data are taken from the job cost sheets for each job. Factory overhead charges include a total of $900 of indirect materials and $600 of indirect labor. One work in process control account is used. Direct materials Direct labor Factory overhead Job 401 $3,200 2,400 1,250 Job 402 $3,800 3,500 2,000 Job 403 $2,000 1,500 850 Prepare a journal entry to record each of the following: a. Materials used b. Factory wages and salaries earned c. Factory Overhead transferred to Work in Process

Explanation / Answer

ans)

a) Materials used:

Work in process ( 3200 + 3800 + 2000) 9000

Factory overhead 900

Materials 9900

b) Factory wages and salaries earned:

Work in process (2400 + 3500 + 1500) 7400

Factory overhead 600

Payroll 8000

C) Factory overhead transferred to work in process:

Work in process (1250 + 2000 + 850) 4100

Factory overhead 4100

  

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