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CCT 102 - Please Do Both Pa

CCT 102 - Please Do Both Pa

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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ACCT 102 - Please Do Both Parts

Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor coșts. The following information appears in the company's Work in Process Inventory account for the month of June. Debits to account: Balance, June 1 Direct materials $ 5,000 18,000 12,000 Direct labor Manufacturing overhead (applied to jobs as 125% of direct labor cost) Total debits to account 15,000 $ 50,000 Credits to account: Transferred to Finished Goods Inventory account 44,000 Balance, June 30 $ 6,000 Required: a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2 The transfer of production completed during June to the Finished Goods Inventory account. 3. The cash sale of 80 percent of the merchandise completed during June at a totall sales price of $50,000. Show the related cost of goods sold in a separate journal entry. Complete this question by entering your answers in the tabs below. Required A Required B Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. Manufacturing overhead applied to jobs in process Direct materials charged to jobs in process <Required A Required B >
Transcribed Image Text:Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor coșts. The following information appears in the company's Work in Process Inventory account for the month of June. Debits to account: Balance, June 1 Direct materials $ 5,000 18,000 12,000 Direct labor Manufacturing overhead (applied to jobs as 125% of direct labor cost) Total debits to account 15,000 $ 50,000 Credits to account: Transferred to Finished Goods Inventory account 44,000 Balance, June 30 $ 6,000 Required: a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2 The transfer of production completed during June to the Finished Goods Inventory account. 3. The cash sale of 80 percent of the merchandise completed during June at a totall sales price of $50,000. Show the related cost of goods sold in a separate journal entry. Complete this question by entering your answers in the tabs below. Required A Required B Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. Manufacturing overhead applied to jobs in process Direct materials charged to jobs in process <Required A Required B >
Complete this question by entering your answers in the tabs below. Required A Required B Prepare general journal entries to summarize: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of production completed during June to the Finished Goods Inventory account. 3. The cash sale of 80 percent of the merchandise completed during June at'a total sales price of $50,000. Show the related cost of goods sold in a separate journal entry. Show lessA View transaction list Journal entry worksheet 1 2. 4 Record the costs charged to jobs during June. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Record entry Clear entry View general journal
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Prepare general journal entries to summarize: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of production completed during June to the Finished Goods Inventory account. 3. The cash sale of 80 percent of the merchandise completed during June at'a total sales price of $50,000. Show the related cost of goods sold in a separate journal entry. Show lessA View transaction list Journal entry worksheet 1 2. 4 Record the costs charged to jobs during June. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Record entry Clear entry View general journal
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