Sub-zero Inc. produces customized Art and uses a job costing system to accumulate costs in its factory. During the year, the following transactions were completed with respect to Job 20. a. Purchased raw material on account $200,000. b. Raw materials were issued from the storeroom for use in production $180,000 (70% direct and the balance indirect). c. Factory labor costs paid by check were $282,000. The job sheet indicated that $150,000 was direct labor and the balance accounted for indirect. d. Overhead costs incurred on account were $70,000. e. Manufacturing overhead was applied at the rate of 50% direct labor cost. f. The job was completed and transferred to the finish goods warehouse. g. The Art was sold for $400,000 to the St Lucia National Trust on credit. Required: i. Prepare ALL the journal entries or T-accounts for the above transactions. Calculate and dispose of any under or over-applied. ii.
Sub-zero Inc. produces customized Art and uses a job costing system to accumulate costs in its factory. During the year, the following transactions were completed with respect to Job 20. a. Purchased raw material on account $200,000. b. Raw materials were issued from the storeroom for use in production $180,000 (70% direct and the balance indirect). c. Factory labor costs paid by check were $282,000. The job sheet indicated that $150,000 was direct labor and the balance accounted for indirect. d. Overhead costs incurred on account were $70,000. e. Manufacturing overhead was applied at the rate of 50% direct labor cost. f. The job was completed and transferred to the finish goods warehouse. g. The Art was sold for $400,000 to the St Lucia National Trust on credit. Required: i. Prepare ALL the journal entries or T-accounts for the above transactions. Calculate and dispose of any under or over-applied. ii.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Based on the following transactions in the attached picture
A) Prepare all the
B) Calculate and dispose of any under or over-applied.
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