Please see picture for info [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Beginning of period End of Period Raw materials $ 29,000 $ 59,000 Work in process 9,600 18,500 Finished goods 64,000 33,200 Cost incurred for the period Raw materials purchases $ 181,000 Factory payroll 150,000 Factory overhead (actual) Indirect materials used 16,000 Indirect labor used 34,500 Other overhead costs 91,500 Direct labor used (recorded as factory wages payable). Indirect labor used (recorded as factory wages payable). Prepare journal entries for the above transactions for the period.
Please see picture for info [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Beginning of period End of Period Raw materials $ 29,000 $ 59,000 Work in process 9,600 18,500 Finished goods 64,000 33,200 Cost incurred for the period Raw materials purchases $ 181,000 Factory payroll 150,000 Factory overhead (actual) Indirect materials used 16,000 Indirect labor used 34,500 Other overhead costs 91,500 Direct labor used (recorded as factory wages payable). Indirect labor used (recorded as factory wages payable). Prepare journal entries for the above transactions for the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
100%
Please see picture for info
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security products and uses a
| Inventories | Beginning of period | End of Period |
|---|---|---|
| Raw materials | $ 29,000 | $ 59,000 |
| Work in process | 9,600 | 18,500 |
| Finished goods | 64,000 | 33,200 |
| Cost incurred for the period | |
| Raw materials purchases | $ 181,000 |
|---|---|
| Factory payroll | 150,000 |
| Factory overhead (actual) | |
| Indirect materials used | 16,000 |
| Indirect labor used | 34,500 |
| Other overhead costs | 91,500 |
- Direct labor used (recorded as factory wages payable).
- Indirect labor used (recorded as factory wages payable).
Prepare
Transcribed Image Text:**Required information**
*The following information applies to the questions displayed below.*
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
| | Beginning of period | End of period |
|--------------------------|---------------------|---------------|
| Raw materials | $ 29,000 | $ 59,000 |
| Work in process | 9,600 | 18,500 |
| Finished goods | 64,000 | 33,200 |
**Cost incurred for the period**
- Raw materials purchases: $181,000
- Factory payroll: $150,000
- Factory overhead (actual):
- Indirect materials used: $16,000
- Indirect labor used: $34,500
- Other overhead costs: $91,500
1. Direct labor used (recorded as factory wages payable).
2. Indirect labor used (recorded as factory wages payable).
Prepare journal entries for the above transactions for the period.
**Journal entry worksheet**
* Record the entry for direct labor used. Note: Enter debits before credits.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education