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(1) (2) (3) Work in Process Inventory Raw Materials Inventory Work in Process Inventory Factory Labor Raw Materials Inventory Work in Process Inventory Manufacturing Overhead 96380 61000 73200 1000 61000 109800 73200

(1) (2) (3) Work in Process Inventory Raw Materials Inventory Work in Process Inventory Factory Labor Raw Materials Inventory Work in Process Inventory Manufacturing Overhead 96380 61000 73200 1000 61000 109800 73200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,400, direct labor $14,640, and manufacturing overhead $19,520. As of January 1, Job 49 had been completed at a cost of $109,800 and was part of finished goods inventory. There was a $18,300 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $148,840 and $192,760, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Purchased additional raw materials of $109,800 on account. Incurred factory labor costs of $85,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $14,640; and various other manufacturing overhead costs on account $19,520. Assigned direct materials and direct labor to jobs as follows. Job No. 50 51 52 Direct Materials $12,200 47,580 36,600 Direct Labor $6,100 30,500 24,400
Transcribed Image Text:Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,400, direct labor $14,640, and manufacturing overhead $19,520. As of January 1, Job 49 had been completed at a cost of $109,800 and was part of finished goods inventory. There was a $18,300 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $148,840 and $192,760, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Purchased additional raw materials of $109,800 on account. Incurred factory labor costs of $85,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $14,640; and various other manufacturing overhead costs on account $19,520. Assigned direct materials and direct labor to jobs as follows. Job No. 50 51 52 Direct Materials $12,200 47,580 36,600 Direct Labor $6,100 30,500 24,400
Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Work in Process Inventory e Your answer is partially correct. (2) (3) Raw Materials Inventory Work in Process Inventory Factory Labor Raw Materials Inventory Work in Process Inventory Manufacturing Overhead Debit 96380 61000 73200 Credit 101 61000 109800 73200
Transcribed Image Text:Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Work in Process Inventory e Your answer is partially correct. (2) (3) Raw Materials Inventory Work in Process Inventory Factory Labor Raw Materials Inventory Work in Process Inventory Manufacturing Overhead Debit 96380 61000 73200 Credit 101 61000 109800 73200
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