**Oak Creek Furniture Factory (OCFF): Job Order Costing System**Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, employs job order costing to track the costs associated with each customer order. As of March 1, OCFF had two jobs in progress with the following costs:- **Work in Process Balance on 3/1** - Job 33: $5,500 - Job 34: $3,100 - **Total**: $8,600**Source Documents Analysis for March:**The analysis of source documents revealed the following costs during March:| Job | Materials Requisitions | Labor Time Tickets | Status of Job at Month-End ||---------|------------------------|--------------------|--------------------------------|| Job 33 | $3,300 | $4,900 | Completed and sold || Job 34 | $2,800 | $4,900 | Completed, but not sold || Job 35 | $3,900 | $3,800 | In process || Indirect| $600 | $2,500 | || **Total** | **$10,600** | **$16,100** | |**Overhead Application:**OCFF applies overhead to products at a rate of 70% of the direct labor cost.**Required Task:**Prepare journal entries to account for materials requisitions, labor costs, and applied overhead.> **Note**: If a journal entry is not required for a transaction/event, select "No Journal Entry Required" in the first account field.**Journal Entry Worksheet:**The journal entry worksheet includes three steps for recording transactions. The first step requires recording the issuance of raw materials to production. Enter debits before credits using the template provided.- **Transaction Recording Template:** - For each transaction, specify in the general journal section the amounts to be debited and credited. ![Journal Entry Worksheet Template](#)For further instructions, users can select to view the transaction list and the general journal after recording entries.

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Description: **Oak Creek Furniture Factory (OCFF): Job Order Costing System**Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, employs job order costing to track the costs associated with each customer order. As of March 1, OCFF had two jobs i

Journal Entry :— It is an act of recording transactions in books of account when transaction…

Business

Accounting

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 Source documents revealed the following during March: Materials Requisitions Forms Job 33 Job 34 Job 35 Indirect View transaction list $ 3,300 2,800 3,900 600 $ 10,600 The company applies overhead to products at a rate of 70 percent of direct labor cost. < Balance on 3/1 $5,500 3,100 $ 8,600 Required: Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. 1 Journal entry worksheet 2 Transaction a Labor Time Tickets $ 4,900 4,900 3,800 2,500 $ 16,100 3 Note: Enter debits before credits. Record entry Record the issuance of raw materials to production. Status of Job at Month-End Completed and sold Completed, but not sold In process General Journal Clear entry Debit Credit View general journal >

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 Source documents revealed the following during March: Materials Requisitions Forms Job 33 Job 34 Job 35 Indirect View transaction list $ 3,300 2,800 3,900 600 $ 10,600 The company applies overhead to products at a rate of 70 percent of direct labor cost. < Balance on 3/1 $5,500 3,100 $ 8,600 Required: Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. 1 Journal entry worksheet 2 Transaction a Labor Time Tickets $ 4,900 4,900 3,800 2,500 $ 16,100 3 Note: Enter debits before credits. Record entry Record the issuance of raw materials to production. Status of Job at Month-End Completed and sold Completed, but not sold In process General Journal Clear entry Debit Credit View general journal >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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**Oak Creek Furniture Factory (OCFF): Job Order Costing System**

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, employs job order costing to track the costs associated with each customer order. As of March 1, OCFF had two jobs in progress with the following costs:

- **Work in Process Balance on 3/1**
- Job 33: $5,500
- Job 34: $3,100
- **Total**: $8,600

**Source Documents Analysis for March:**

The analysis of source documents revealed the following costs during March:

| Job | Materials Requisitions | Labor Time Tickets | Status of Job at Month-End |
|---------|------------------------|--------------------|--------------------------------|
| Job 33 | $3,300 | $4,900 | Completed and sold |
| Job 34 | $2,800 | $4,900 | Completed, but not sold |
| Job 35 | $3,900 | $3,800 | In process |
| Indirect| $600 | $2,500 | |
| **Total** | **$10,600** | **$16,100** | |

**Overhead Application:**

OCFF applies overhead to products at a rate of 70% of the direct labor cost.

**Required Task:**

Prepare journal entries to account for materials requisitions, labor costs, and applied overhead.

> **Note**: If a journal entry is not required for a transaction/event, select "No Journal Entry Required" in the first account field.

**Journal Entry Worksheet:**

The journal entry worksheet includes three steps for recording transactions. The first step requires recording the issuance of raw materials to production. Enter debits before credits using the template provided.

- **Transaction Recording Template:**
- For each transaction, specify in the general journal section the amounts to be debited and credited.

![Journal Entry Worksheet Template](#)

For further instructions, users can select to view the transaction list and the general journal after recording entries.

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Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $ 7,500 Job 34 6,000 $ 13,500 Source documents revealed the following during March: Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,500 $ 6,500 Completed and sold Job 34 6,000 7,800 Completed, but not sold Job 35 4,200 3,250 In process Indirect 1,300 2,140 $ 15,000 $ 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost. Required: Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
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The Prancing Pony utilizes a job-order costing system for accumulating their product costs. They had the following jobs during the month: Job A Job B Job C Job D Beginning balance 67,700 77,200 23,000 55,100 Direct materials used 92,800 67,000 60,500 75,900 Direct labor 47,400 80,300 81,100 83,900 Applied manufacturing overhead 97,000 10,300 14,900 81,500 Job A was unfinished at the end of the period. Job B and D were finished, and subsequently sold. Job C was finished, but had not yet been sold at the end of the period. The time ticket record revealed that Employee Underhill worked on Job A, while Employee Baggins worked on Job B, C, and D. Each job represents a small batch of 400 units. As the manager for The Prancing Pony, you previously set and communicated with employees that in order to meet budgetary goals, each unit should require no more than $150 of direct labor and $200 of direct materials. Using the information provided, what is the reported cost…
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I need ALL parts of this question answered Gilkison Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below: Gilkison Corporation Balance Sheet October 1 Assets: Cash $ 10,350 Raw materials $ 3,350 Work in process 15,350 Finished goods 19,350 38,050 Property, plant, and equipment (net) 229,350 Total assets $277,750 Liabilities and Stockholders’ Equity: Accounts payable $ 15,175 Retained earnings 262,575 Total liabilities and stockholders’ equity $277,750 Summaries of the transactions completed during October appear below: (1) Raw materials purchased on account $ 66,350 (2) Raw materials used in production (direct materials) $ 50,350 (3) Raw materials used in production (indirect materials) $ 7,175 (4) Direct labor paid in cash $…
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 costs. 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 Direct labor Manufacturing overhead (applied to jobs as 125% of direct labor cost) Total debits to account Credits to account: Transferred to Finished Goods Inventory account Balance, June 30 Required: $ 5,000 18,000 12,100 15,125 $ 50,225 44,000 $ 6,225 a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,500, 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…
Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 11-101 $6,240 Job 11-102 9,000 Job 11-103 7,210 Job 11-104 6,750 Factory supervision 4,000 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour. a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account, $28,790. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,880 $2,910 302 3,690 3,860 303 2,300 1,780 304 7,820 6,990 305 5,310 5,050 306 3,700 3,280 For general factory use 1,070 4,180 c. Factory overhead costs incurred on account, $5,600. d. Depreciation of machinery and equipment, $1,970. e. The factory overhead rate is $53 per machine hour. Machine hours used: Job Machine Hours 301 25 302 34 303 30 304 71 305 42 306 26 Total 228 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,270; Job 302, $11,720; Job 303, $15,730. Required: 1. Journalize the entries to record the summarized…