Ottoson Fencing Inc. uses job order costing. The following data summarize the operations related to production for December, the first month of operations: a. Materials purchased on account, $29,050. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,870 $2,870 302 3,690 3,770 303 2,300 1,920 304 8,510 7,050 305 5,000 5,250 306 3,770 3,240 For general factory use 1,030 4,110 c. Factory overhead costs incurred on account, $5,400. d. Depreciation of machinery and equipment, $2,000. e. The factory overhead rate is $52 per machine hour. Machine hours used: Job Machine Hours 301 27 302 35 303 29 304 70 305 39 306 25 Total 225 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,310; Job 302, $11, 120; Job 303, $14,320. Required: 1. Journalize the entries to record the summarized operations. Record each item (items a - f) as an individual entry on December 31. Record item g as 2 entries. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Ottoson Fencing Inc. uses job order costing. The following data summarize the operations related to production for December, the first month of operations: a. Materials purchased on account, $29,050. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,870 $2,870 302 3,690 3,770 303 2,300 1,920 304 8,510 7,050 305 5,000 5,250 306 3,770 3,240 For general factory use 1,030 4,110 c. Factory overhead costs incurred on account, $5,400. d. Depreciation of machinery and equipment, $2,000. e. The factory overhead rate is $52 per machine hour. Machine hours used: Job Machine Hours 301 27 302 35 303 29 304 70 305 39 306 25 Total 225 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,310; Job 302, $11, 120; Job 303, $14,320. Required: 1. Journalize the entries to record the summarized operations. Record each item (items a - f) as an individual entry on December 31. Record item g as 2 entries. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 1PA: Barnes Company uses a job order cost system. The following data summarize the operations related to...
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Transcribed Image Text:Ottoson Fencing Inc. uses job order costing. The following data summarize the operations related to production for
December, the first month of operations:
a. Materials purchased on account, $29,050.
b. Materials requisitioned and factory labor used:
Job
Materials
Factory Labor
301 $2,870 $2,870
302 3,690 3,770
303 2,300 1,920
304 8,510 7,050
305 5,000 5,250
306 3,770 3,240
For general factory use 1,030 4,110
c. Factory overhead costs incurred on account, $5,400.
d. Depreciation of machinery and equipment, $2,000.
e. The factory overhead rate is $52 per machine hour. Machine hours used:
Transcribed Image Text:Job Machine Hours
301 27
302 35
303 29
304 70
305 39
306 25
Total 225
f. Jobs completed: 301, 302, 303 and 305.
g. Jobs were shipped and customers were billed as follows: Job 301, $8,310; Job 302, $11, 120; Job 303, $14,320.
Required:
1. Journalize the entries to record the summarized operations. Record each item (items a - f) as an individual entry on
December 31. Record item g as 2 entries.
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as
transaction codes. Insert memo account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
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