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 70% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of Period Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) $ 43,000 10, 200 63,000 Indirect materials used Indirect labor used Other overhead costs End of Period $ 52,000 21,300 35,600 $ 210,000 345,000 15,000 80,000 120,000. 1. Direct labor used (recorded as factory wages payable). 2. Indirect labor used (recorded as factory wages payable).
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 70% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of Period Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) $ 43,000 10, 200 63,000 Indirect materials used Indirect labor used Other overhead costs End of Period $ 52,000 21,300 35,600 $ 210,000 345,000 15,000 80,000 120,000. 1. Direct labor used (recorded as factory wages payable). 2. Indirect labor used (recorded as factory wages payable).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text: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 70% of direct labor cost.
Inventories
Raw materials
Work in process
Finished goods
Raw materials purchases
Factory payroll
Factory overhead (actual)
Cost incurred for the period
Indirect materials used
Indirect labor used
Other overhead costs
View transaction list
Beginning of
Period
A
Journal entry worksheet
$ 43,000
10, 200
63,000
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.
B
Note: Enter debits before credits.
Transaction
1
Record the entry for direct labor used.
End of Period
$ 52,000
21,300
35,600
$ 210,000
345,000
15,000
80,000
120,000.
General Journal
Debit
Credit
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