During February, Charm Inc. worked on two jobs with the following data:   Job 13 Job 12 Units in each job 100 units 200 units Units sold 100 units ---- Materials requisitioned $5,230 $3,970 Direct labor hours 900 hrs. 1,220 hrs. Direct labor cost $13,500 $18,300 Overhead is assigned on the basis of direct labor hours at a rate of $8. During February, Job 12 was completed and transferred to Finished Goods. Job 13 is the only unfinished job at the end of the month. A.  Prepare the journal entries for requisitioning all materials used during the month. B.  Prepare the journal entries for direct labor for the month. Assume the workers have not been paid yet.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During February, Charm Inc. worked on two jobs with the following data:

  Job 13 Job 12
Units in each job 100 units 200 units
Units sold 100 units ----
Materials requisitioned $5,230 $3,970
Direct labor hours 900 hrs. 1,220 hrs.
Direct labor cost $13,500 $18,300

Overhead is assigned on the basis of direct labor hours at a rate of $8. During February, Job 12 was completed and transferred to Finished Goods. Job 13 is the only unfinished job at the end of the month.

A.  Prepare the journal entries for requisitioning all materials used during the month.

B.  Prepare the journal entries for direct labor for the month. Assume the workers have not been paid yet.

(see attachment)

During February, Charm Inc. worked on two jobs with the following data:
Job 13
Job 12
Units in each job
100 units
200 units
Units sold
100 units
Materials requisitioned
$5,230
$3,970
Direct labor hours
900 hrs.
1,220 hrs.
Direct labor cost
$13,500
$18,300
Overhead is assigned on the basis of direct labor hours at a rate of $8. During February, Job 12 was completed and transferred to Finished Goods. Job 13 is the only unfinished job at the end of the month.
A. Prepare the journal entries for requisitioning all materials used during the month.
9,200
9,200
B. Prepare the journal entries for direct labor for the month. Assume the workers have not been paid yet.
Cost of Goods Sold
Finished Goods
Raw Materials
Wages Payable
Work in Process
Transcribed Image Text:During February, Charm Inc. worked on two jobs with the following data: Job 13 Job 12 Units in each job 100 units 200 units Units sold 100 units Materials requisitioned $5,230 $3,970 Direct labor hours 900 hrs. 1,220 hrs. Direct labor cost $13,500 $18,300 Overhead is assigned on the basis of direct labor hours at a rate of $8. During February, Job 12 was completed and transferred to Finished Goods. Job 13 is the only unfinished job at the end of the month. A. Prepare the journal entries for requisitioning all materials used during the month. 9,200 9,200 B. Prepare the journal entries for direct labor for the month. Assume the workers have not been paid yet. Cost of Goods Sold Finished Goods Raw Materials Wages Payable Work in Process
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