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Information on Kwon Manufacturing’s activities for its first month of operations follows: a. Purchased $101,100 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 49,300 Job 202 24,700 Total direct materials 74,000 Indirect materials 9,720 Total materials used $ 83,720 c. Time tickets show the following labor used for the month. Job 201 $ 40,300 Job 202 13,700 Total direct labor 54,000 Indirect labor 25,300 Total labor used $ 79,300 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $167,060 on credit. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,100 Rent on factory building (payable) 610 Factory utilities (payable) 910 Expired factory insurance 4,100 Total other factory overhead costs $ 38,720 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.

Information on Kwon Manufacturing’s activities for its first month of operations follows: a. Purchased $101,100 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 49,300 Job 202 24,700 Total direct materials 74,000 Indirect materials 9,720 Total materials used $ 83,720 c. Time tickets show the following labor used for the month. Job 201 $ 40,300 Job 202 13,700 Total direct labor 54,000 Indirect labor 25,300 Total labor used $ 79,300 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $167,060 on credit. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,100 Rent on factory building (payable) 610 Factory utilities (payable) 910 Expired factory insurance 4,100 Total other factory overhead costs $ 38,720 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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Information on Kwon Manufacturing’s activities for its first month of operations follows:

a. Purchased $101,100 of raw materials on credit.

b. Materials requisitions show the following materials used for the month.

Job 201 $ 49,300
Job 202 24,700
Total direct materials 74,000
Indirect materials 9,720
Total materials used $ 83,720

c. Time tickets show the following labor used for the month.

Job 201 $ 40,300
Job 202 13,700
Total direct labor 54,000
Indirect labor 25,300
Total labor used $ 79,300

d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost.

e. Transferred Job 201 to Finished Goods Inventory.

f. Sold Job 201 for $167,060 on credit.

g. Incurred the following actual other overhead costs for the month.

Depreciation of factory equipment $ 33,100
Rent on factory building (payable) 610
Factory utilities (payable) 910
Expired factory insurance 4,100
Total other factory overhead costs $ 38,720

Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.

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