Entries for Factory Costs and Jobs Completed Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $2,570 of indirect materials and $31,070 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301     Job 302 Direct materials $26,570     Direct materials $12,420 Direct labor 10,200     Direct labor 5,300 Factory overhead 5,610     Factory overhead 2,915 Total $42,380     Total $20,635             Job 303     Job 304 Direct materials $36,920     Direct materials $7,650 Direct labor 11,300     Direct labor 1,500 Factory overhead       Factory overhead   Journalize the summary entry to record each of the following operations for January (one entry for each operation): a.  Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank.   Work in Process        Factory Overhead        Materials      b.  Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank.   Work in Process        Factory Overhead        Wages Payable      c.  Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).   Work in Process        Factory Overhead      d.  Completion of Jobs 301 and 302.   Finished Goods        Work in Process

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Entries for Factory Costs and Jobs Completed

    Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $2,570 of indirect materials and $31,070 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

    Job 301     Job 302
    Direct materials $26,570     Direct materials $12,420
    Direct labor 10,200     Direct labor 5,300
    Factory overhead 5,610     Factory overhead 2,915
    Total $42,380     Total $20,635
               
    Job 303     Job 304
    Direct materials $36,920     Direct materials $7,650
    Direct labor 11,300     Direct labor 1,500
    Factory overhead       Factory overhead  

    Journalize the summary entry to record each of the following operations for January (one entry for each operation):

    a.  Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank.

      Work in Process     
      Factory Overhead     
      Materials     

    b.  Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank.

      Work in Process     
      Factory Overhead     
      Wages Payable     

    c.  Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).

      Work in Process     
      Factory Overhead     

    d.  Completion of Jobs 301 and 302.

      Finished Goods     
      Work in Process     
 
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