▪ The following activities took place in the work in process inventory during April: Beginning Balance $15,000 Direct materials used 120,000 Indirect material issued to production was $20,000 Total manufacturing labour incurred in April was $162,500, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for April amounted to $130,000. The predetermined manufacturing overhead rate is 120% of direct labour cost. Two jobs were completed with total costs of $120,000 & $85,000 respectively. They were sold on account for $260,000 & $150,000 respectively.
▪ The following activities took place in the work in process inventory during April: Beginning Balance $15,000 Direct materials used 120,000 Indirect material issued to production was $20,000 Total manufacturing labour incurred in April was $162,500, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for April amounted to $130,000. The predetermined manufacturing overhead rate is 120% of direct labour cost. Two jobs were completed with total costs of $120,000 & $85,000 respectively. They were sold on account for $260,000 & $150,000 respectively.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 13PB: The Following events occurred during March for Ajax Company. Prepare a journal entry for each...
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![Question 4
The following activities took place in the work in process inventory during April:
■
■
■
■
Beginning Balance
$15,000
Direct materials used
120,000
Indirect material issued to production was $20,000
Total manufacturing labour incurred in April was $162,500, 75% of this amount represented
direct labour.
Other manufacturing overhead costs incurred for April amounted to $130,000.
The predetermined manufacturing overhead rate is 120% of direct labour cost.
Two jobs were completed with total costs of $120,000 & $85,000 respectively. They were
sold on account for $260,000 & $150,000 respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18d10f72-6677-4bac-a530-84e01903235c%2F0004485e-4a33-4266-89dd-f3e4af9be53b%2F5mmkits_processed.png&w=3840&q=75)
Transcribed Image Text:Question 4
The following activities took place in the work in process inventory during April:
■
■
■
■
Beginning Balance
$15,000
Direct materials used
120,000
Indirect material issued to production was $20,000
Total manufacturing labour incurred in April was $162,500, 75% of this amount represented
direct labour.
Other manufacturing overhead costs incurred for April amounted to $130,000.
The predetermined manufacturing overhead rate is 120% of direct labour cost.
Two jobs were completed with total costs of $120,000 & $85,000 respectively. They were
sold on account for $260,000 & $150,000 respectively.
![Required:
(a) Record the journal entries:
1) For direct materials used in April
2) For indirect material issued to production in April
3) For total manufacturing labour incurred in April
4) To assign manufacturing labour to the appropriate accounts
5) For other manufacturing overhead incurred
6) For manufacturing overhead allocated for April
7) To move the completed jobs into finished goods inventory
8) To sell the two completed jobs on account
9) To dispose of the manufacturing overhead variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18d10f72-6677-4bac-a530-84e01903235c%2F0004485e-4a33-4266-89dd-f3e4af9be53b%2Frj6at7r_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
(a) Record the journal entries:
1) For direct materials used in April
2) For indirect material issued to production in April
3) For total manufacturing labour incurred in April
4) To assign manufacturing labour to the appropriate accounts
5) For other manufacturing overhead incurred
6) For manufacturing overhead allocated for April
7) To move the completed jobs into finished goods inventory
8) To sell the two completed jobs on account
9) To dispose of the manufacturing overhead variance
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