Veggie functions and uses job order costingfor its clients. The company budgetsoverhead costs of $15,000 per month anddirect labor hours of 3,000 to allocateoverhead costs to the jobs. During themonth, the company had the followingtransactions:a. Raw material purchased for cash $35,000.b. Material requisitions were a total of$26,550, of which $25,250 were forJob No. 100: $10,000Job No. 200: $8,500Job No. 300: $6,750Direct labor wages accrued at $15 per directlabor hour.d. Other overhead costs recorded for themonth were as follows:Accrued property taxes $750Building and machine depreciation $4,800Insurance expired $850e. Manufacturing overhead costs wereapplied to the jobs.f. Job No. 100 and 200 were completed andthe customers were billed at 150% of cost.g. Collect the amount due from Job No. 100.h. The company closed its overhead accountas being not significant ate and of the month.Required: Record journal entries for the giventransactions.

Journal entries shows the recording of transactions during an accounting year and every transaction…

Answered: g. Collect the amount due from Job No.…

g. Collect the amount due from Job No. 100. h. The company closed its overhead account as being not significant ate and of the month. Required: Record journal entries for the given transactions.

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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Question

Veggie functions and uses job order costing
for its clients. The company budgets
overhead costs of $15,000 per month and
direct labor hours of 3,000 to allocate
overhead costs to the jobs. During the
month, the company had the following
transactions:
a. Raw material purchased for cash $35,000.
b. Material requisitions were a total of
$26,550, of which $25,250 were for
Job No. 100: $10,000
Job No. 200: $8,500
Job No. 300: $6,750
Direct labor wages accrued at $15 per direct
labor hour.
d. Other overhead costs recorded for the
month were as follows:
Accrued property taxes $750
Building and machine depreciation $4,800
Insurance expired $850
e. Manufacturing overhead costs were
applied to the jobs.
f. Job No. 100 and 200 were completed and
the customers were billed at 150% of cost.
g. Collect the amount due from Job No. 100.
h. The company closed its overhead account
as being not significant ate and of the month.
Required: Record journal entries for the given
transactions.

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