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, $7,500 of indirect materials and $11,800 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 $10,500              Direct materials $21,600 Direct labor       7,200                  Direct labor       15,600 Factory overhead           4,752    Factory overhead           10,296 Total     $22,452              Total     $47,496 Job 303                                            Job 304 Direct materials $23,800              Direct materials $15,900 Direct labor       19,100                Direct labor       14,000 Factory overhead           —          Factory overhead           —   Required: Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles. Direct and indirect materials used. Direct and indirect labor used. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). Completion of Jobs 301 and 302.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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, $7,500 of indirect materials and $11,800 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 $10,500              Direct materials $21,600

Direct labor       7,200                  Direct labor       15,600

Factory overhead           4,752    Factory overhead           10,296

Total     $22,452              Total     $47,496

Job 303                                            Job 304

Direct materials $23,800              Direct materials $15,900

Direct labor       19,100                Direct labor       14,000

Factory overhead           —          Factory overhead           —

 

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.

  1. Direct and indirect materials used.
  2. Direct and indirect labor used.
  3. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
  4. Completion of Jobs 301 and 302.

CHART OF ACCOUNTS

Old School Publishing Inc.

General Ledger

ASSETS

110        Cash

121        Accounts Receivable

125        Notes Receivable

126        Interest Receivable

131        Materials

132        Work in Process

133        Factory Overhead

134        Finished Goods

141        Supplies

142        Prepaid Insurance

143        Prepaid Expenses

181        Land

191        Factory

192        Accumulated Depreciation-Factory

LIABILITIES

210        Accounts Payable

221        Utilities Payable

231        Notes Payable

236        Interest Payable

241        Lease Payable

251        Wages Payable

252        Consultant Fees Payable

EQUITY

311        Common Stock

340        Retained Earnings

351        Dividends

390        Income Summary

REVENUE

410        Sales

610        Interest Revenue

EXPENSES

510        Cost of Goods Sold

520        Wages Expense

531        Selling Expenses

532        Insurance Expense

533        Utilities Expense

534        Office Supplies Expense

540        Administrative Expenses

560        Depreciation Expense-Factory

590        Miscellaneous Expense

710        Interest Expense

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