Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 17, Problem 17.8EX
(a)
To determine
Direct labor cost
The employees working on particular job use time ticket to record the work done by them with respect to a particular job. The summary of time tickets is used for calculating direct labor cost for a particular job.
Factory
It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory
To record: the
(b)
To determine
Applied factory overhead
The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.
To record: Journal entry the factory overhead applied in the books of D Industries.
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Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:
Job 201
$6,240
Job 202
7,000
Job 203
5,210
Job 204
6,7500
Factory supervision
4,000
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Work in Process
Factory Overhead
Wages Payable
b. Journalize the entry to apply factory overhead to production for November. If an amount box does not require an entry, leave it blank.
Work in Process
Factory Overhead
Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are
summarized as fllows:
Job 201
$3,650
Job 202
1,820
Job 203
1,440
Job 204
2,690
Factory supervision
1,250
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $15 per hour.
If required, round final answers to the nearest dollar.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Work in Process
Factory Overhead
Wages Payable
Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:
Job 11-101
$6,240
Job 11-102
9,000
Job 11-103
7,210
Job 11-104
6,750
Factory supervision
4,000
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Chapter 17 Solutions
Financial & Managerial Accounting
Ch. 17 - Prob. 1DQCh. 17 - What kind of firm would use a job order cost...Ch. 17 - Which account is used in the job order cost system...Ch. 17 - Prob. 4DQCh. 17 - What is a job cost sheet?Ch. 17 - Prob. 6DQCh. 17 - Discuss how the predetermined factory overhead...Ch. 17 - A. How is a predetermined factory overhead rate...Ch. 17 - Prob. 9DQCh. 17 - Describe how a job order cost .system can be used...
Ch. 17 - Issuance of materials On April 6, Almerinda...Ch. 17 - Prob. 17.1BPECh. 17 - Direct labor costs During April, Almerinda Company...Ch. 17 - Direct labor costs During August, Rothchild...Ch. 17 - Factory overhead costs During April, Almerinda...Ch. 17 - Prob. 17.3BPECh. 17 - Applying factory overhead Almerinda Company...Ch. 17 - Prob. 17.4BPECh. 17 - Job costs At the end of April, Almerinda Company...Ch. 17 - Job costs At the end of August, Rothchild Company...Ch. 17 - Prob. 17.6APECh. 17 - Prob. 17.6BPECh. 17 - Transactions in a job order cost system Five...Ch. 17 - Cost flow relationships The following information...Ch. 17 - Cost of materials issuances under the FIFO method...Ch. 17 - Entry for issuing materials Materials issued for...Ch. 17 - Entries for materials Eclectic Ergonomics Company...Ch. 17 - Prob. 17.6EXCh. 17 - Entry for factory labor costs The weekly time...Ch. 17 - Prob. 17.8EXCh. 17 - Factory overhead rates, entries, and account...Ch. 17 - Predetermined factory overhead rate Spring Street...Ch. 17 - Predetermined factory overhead rate Poehling...Ch. 17 - Entry for jobs completed; cost of unfinished jobs...Ch. 17 - Entries for factory costs and jobs completed Old...Ch. 17 - Financial statements of a manufacturing firm The...Ch. 17 - Decision making with job order costs Alvarez...Ch. 17 - Prob. 17.16EXCh. 17 - Job order cost accounting for a service company...Ch. 17 - Job order cost accounting for a service company...Ch. 17 - Entries for costs in a job order cost system...Ch. 17 - Prob. 17.2APRCh. 17 - Job order cost sheet Remnant Carpet Company sells...Ch. 17 - Analyzing manufacturing cost accounts Fire Rock...Ch. 17 - Flow of costs and income statement Ginocera Inc....Ch. 17 - Entries for costs in a job order cost system Royal...Ch. 17 - Entries and schedules for unfinished jobs and...Ch. 17 - Job order cost sheet Stretch and Trim Carpet...Ch. 17 - Analyzing manufacturing cost accounts Clapton...Ch. 17 - Prob. 17.5BPRCh. 17 - Managerial analysis The controller of the plant of...Ch. 17 - Job order decision making and rate deficiencies...Ch. 17 - Factory overhead rate Salvo Inc., a specialized...Ch. 17 - Recording manufacturing costs Todd Lay just began...Ch. 17 - Prob. 17.5CP
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