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 $ 41,000 9,800 54,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used End of Period $ 37,000 19,700 35,000 $ 197,000 100,000 10,000 23,000 100 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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**

| Inventory Type    | Beginning of Period | End of Period   |
|-------------------|---------------------|-----------------|
| Raw materials     | $41,000             | $37,000         |
| Work in process   | $9,800              | $19,700         |
| Finished goods    | $54,000             | $35,000         |

**Cost Incurred for the Period**

- Raw materials purchases: $197,000
- Factory payroll: $100,000
- Factory overhead (actual):
  - Indirect materials used: $10,000
  - Indirect labor used: $23,000
  - Other overhead costs: $109,000
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 55% of direct labor cost. **Inventories** | Inventory Type | Beginning of Period | End of Period | |-------------------|---------------------|-----------------| | Raw materials | $41,000 | $37,000 | | Work in process | $9,800 | $19,700 | | Finished goods | $54,000 | $35,000 | **Cost Incurred for the Period** - Raw materials purchases: $197,000 - Factory payroll: $100,000 - Factory overhead (actual): - Indirect materials used: $10,000 - Indirect labor used: $23,000 - Other overhead costs: $109,000
**Educational Website Transcription:**

---

### Journal Entry Illustration

#### Transactions:
1. Incurred other actual overhead costs (all paid in Cash).
2. Applied overhead to work in process.

Prepare journal entries for the above transactions for the period.

---

**Journal Entry Worksheet Interface:**

- **Transaction List Button:** A button labeled "View transaction list."

- **Journal Entry Worksheet**

  - There are two tabs labeled "A" and "B" for navigation.
  - The current prompt in tab A instructs:  
    "Record the entry for other actual overhead costs incurred (all paid in Cash)."

- **Important Note:**  
  "Note: Enter debits before credits."

---

#### Data Entry Table:

| Transaction | General Journal     | Debit | Credit |
|-------------|---------------------|-------|--------|
| 1           | (Empty field)       | (Empty field) | (Empty field) |
|             | (Empty field)       | (Empty field) | (Empty field) |
|             | (Empty field)       | (Empty field) | (Empty field) |
|             | (Empty field)       | (Empty field) | (Empty field) |
|             | (Empty field)       | (Empty field) | (Empty field) |

---

**Function Buttons:**

- **Record Entry:** A button to submit the journal entry.
- **Clear Entry:** A button to remove the existing entry data.
- **View General Journal:** A button to review the compiled journal.

---

This exercise provides practice in creating journal entries for accounting, focusing on recording overhead costs and processing overhead applications.
Transcribed Image Text:**Educational Website Transcription:** --- ### Journal Entry Illustration #### Transactions: 1. Incurred other actual overhead costs (all paid in Cash). 2. Applied overhead to work in process. Prepare journal entries for the above transactions for the period. --- **Journal Entry Worksheet Interface:** - **Transaction List Button:** A button labeled "View transaction list." - **Journal Entry Worksheet** - There are two tabs labeled "A" and "B" for navigation. - The current prompt in tab A instructs: "Record the entry for other actual overhead costs incurred (all paid in Cash)." - **Important Note:** "Note: Enter debits before credits." --- #### Data Entry Table: | Transaction | General Journal | Debit | Credit | |-------------|---------------------|-------|--------| | 1 | (Empty field) | (Empty field) | (Empty field) | | | (Empty field) | (Empty field) | (Empty field) | | | (Empty field) | (Empty field) | (Empty field) | | | (Empty field) | (Empty field) | (Empty field) | | | (Empty field) | (Empty field) | (Empty field) | --- **Function Buttons:** - **Record Entry:** A button to submit the journal entry. - **Clear Entry:** A button to remove the existing entry data. - **View General Journal:** A button to review the compiled journal. --- This exercise provides practice in creating journal entries for accounting, focusing on recording overhead costs and processing overhead applications.
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