College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666184
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 26, Problem 9SPB

1.

To determine

Prepare general journal entries to record transactions (a) through (i).

1.

Expert Solution
Check Mark

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Prepare journal entry to record the given transactions.

DateAccounts title and explanation

Debit

($)

Credit

($)

a.Material 44,000 
      Accounts payable 44,000
 (To record the purchase of materials on account.)  
    
b.Work in process8,200 
 Work in process9,100 
 Work in process7,300 
 Work in process8,500 
      Materials  33,100
 (To record direct materials incurred for the job: job no.501, 502,503,504)  
    
c.Factory overhead5,000 
      Materials  5,000
 (To record the issuance of  indirect materials)  
    
d.Work in process4,800 
 Work in process4,100 
 Work in process4,800 
 Work in process5,000 
      Wages payable 18,700
 (To record direct labor incurred for the job: job no.501, 502,503,504)  
    
e.Factory overhead3,300 
      Wages payable 3,300
 (To record the indirect labor charged to production)  
    
f.Factory overhead5,200 
      Cash 5,200
 (To record the payment of electricity bill, heating  oil, and repairs bills for the factory and charge made to production)  
    
g.Work in process3,100 
 Work in process3,300 
 Work in process3,300 
 Work in process3,800 
      Factory  overhead 13,500
 (To record  applied factory overhead to the job: job no.501,502,503,504)  
    
h.Finished goods (Product W) [$8,200+$4,800+$3,100]16,100 
      Work in process 16,100
 (To record the transfer of Job no. 501 to  Product W)  
    
 Finished goods (Product X) [$9,100+$4,100+$3,300]16,500 
      Work in process 16,500
 (To record the transfer of Job no.502 to  Product X)  
    
 Finished goods (Product Y) [$7,300+$4,800+$3,300]15,400 
      Work in process 15,400
 (To record the transfer of Job no.503 to  Product Y)  
    
 Finished goods (Product Z)  [$8,500+$5,000+$3,800]17,300 
      Work in process 17,300
 (To record the transfer of Job no.504 to  Product Z)  
    
i.Accounts receivable17,500 
      Sales  17,500
 (To record sale of product W)  
    
 Cost of goods sold [$8,200+$4,800+$3,100]16,100 
      Finished goods (Product W) 16,100
 (To record cost of goods sold on finished goods of Product W)  
    
 Accounts receivable18,000 
      Sales  18,000
 (To record sale of product X)  
    
 Cost of goods sold [$9,100+$4,100+$3,300]16,500 
      Finished goods (Product X) 16,500
 (To record cost of goods sold on finished goods of Product X)  
    
 Accounts receivable16,900 
      Sales  16,900
 (To record sale of product Y)  
    
 Cost of goods sold [$7,300+$4,800+$3,300]15,400 
      Finished goods (Product Y) 15,400
 (To record cost of goods sold on finished goods of Product Y)  
    
 Accounts receivable19,000 
      Sales  19,000
 (To record sale of product Z)  
    
 Cost of goods sold [$8,500+$5,000+$3,800]17,300 
      Finished goods (Product Z) 17,300
 (To record cost of goods sold on finished goods of Product Z)  

 (Table 1)

2.

To determine

Post the entries to the work in process and finished goods T accounts.

2.

Expert Solution
Check Mark

Explanation of Solution

Post the entries to the work in process and finished goods T accounts.

College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry), Chapter 26, Problem 9SPB , additional homework tip  1

College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry), Chapter 26, Problem 9SPB , additional homework tip  2

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Chapter 26 Solutions

College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry)

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