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. Inventories Raw materials Work in process Finished goods Beginning of period $ 40,000 9,200 56,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 48,000 18, 200 34,900 $ 182,000 250,000 14,000 57,500 108,000 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Inventories
Raw materials
Work in process
Finished goods
Beginning of
period
$ 40,000
9,200
56,000
Cost incurred for the period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used i
Indirect labor used
Other overhead costs
End of
Period
$ 48,000
18, 200
34,900
$ 182,000
250,000
14,000
57,500
108,000
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.
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. Inventories Raw materials Work in process Finished goods Beginning of period $ 40,000 9,200 56,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used i Indirect labor used Other overhead costs End of Period $ 48,000 18, 200 34,900 $ 182,000 250,000 14,000 57,500 108,000 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.
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