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Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400 direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and w part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during t month. 1. 2. 3. 4. 5. Purchased additional raw materials of $82,800 on account. Incurred factory labor costs of $64,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other manufacturing overhead costs on account $14,720. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials 50 51 52 $9,200 35,880 27,600 Direct Labor $4,600 23,000 18,400 Assigned indirect materials of $15,640 and indirect labor of $18,400.

Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400 direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and w part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during t month. 1. 2. 3. 4. 5. Purchased additional raw materials of $82,800 on account. Incurred factory labor costs of $64,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other manufacturing overhead costs on account $14,720. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials 50 51 52 $9,200 35,880 27,600 Direct Labor $4,600 23,000 18,400 Assigned indirect materials of $15,640 and indirect labor of $18,400.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 21E: Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the...
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Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400, direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and was part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during the month. 1. 2. 3. 4. 5. Purchased additional raw materials of $82,800 on account. Incurred factory labor costs of $64,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other manufacturing overhead costs on account $14,720. Assigned direct materials and direct labor to jobs as follows. Job No. 50 51 52 Direct Materials $9,200 35,880 27,600 Direct Labor $4,600 23,000 18,400 Assigned indirect materials of $15,640 and indirect labor of $18,400.
Transcribed Image Text:Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400, direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and was part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during the month. 1. 2. 3. 4. 5. Purchased additional raw materials of $82,800 on account. Incurred factory labor costs of $64,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other manufacturing overhead costs on account $14,720. Assigned direct materials and direct labor to jobs as follows. Job No. 50 51 52 Direct Materials $9,200 35,880 27,600 Direct Labor $4,600 23,000 18,400 Assigned indirect materials of $15,640 and indirect labor of $18,400.
Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) Debit Credit
Transcribed Image Text:Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) Debit Credit
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