Entries for Costs in a Job Order Cost SystemMunson Co. uses a job order cost system. The following data summarize the operationsrelated to production for July:a. Materials purchased on account, $606,310b. Materials requisitioned, $509,300, of which $66,210 was for general factory usec. Factory labor used, $624,500, of which $118,660 was indirectd. Other costs incurred on account for factory overhead, $145,510; selling expenses,$224,330; and administrative expenses, $133,390Prepaid expenses expired for factory overhead, $27,890; for selling expenses,$23,650; and for administrative expenses, $16,980f. Depreciation of office building was $81,250; of office equipment, $41,230; and offactory equipment, $27,890g. Factory overhead costs applied to jobs, $345,600h. Jobs completed, $800,330i. Cost of goods sold, $776,080Required:Journalize the entries to record the summarized operations. For a compound transaction,if an amount box does not require an entry, leave it blank.a. Materials purchased on account, $606,310.EntryDescriptionDebitCredita.b. Materials requisitioned, $509,300, of which $66,210 was for general factory use.EntryDescriptionDebitCreditc. Factory labor used, $624,500, of which $118,660 was indirect.EntryDescriptionDebitCreditd. Other costs incurred on account for factory overhead, $145,510; selling expenses,$224,330; and administrative expenses, $133,390.EntryDescriptionDebitCredit e. Prepaid expenses expired for factory overhead, $27,890; for selling expenses,$23,650; and for administrative expenses, $16,980.EntryDescriptionDebitCreditf. Depreciation of office building was $81,250; of office equipment, $41,230; and offactory equipment, $27,890.EntryDescriptionDebitCreditf.g. Factory overhead costs applied to jobs, $345,600.EntryDescriptionDebitCreditg.h. Jobs completed, $800,330.EntryDescriptionDebitCredith.i. Cost of goods sold, $776,080.EntryDescriptionDebitCredit

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Description: Entries for Costs in a Job Order Cost SystemMunson Co. uses a job order cost system. The following data summarize the operationsrelated to production for July:a. Materials purchased on account, $606,310b. Materials requisitioned, $509,300, of which

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Entries for Costs in a Job Order Cost System Munson Co. uses a job order cost system. The following data summarize the operations related to production for July: a. Materials purchased on account, $606,310 b. Materials requisitioned, $509,300, of which $66,210 was for general factory use c. Factory labor used, $624,500, of which $118,660 was indirect d. Other costs incurred on account for factory overhead, $145,510; selling expenses, $224,330; and administrative expenses, $133,390 Prepaid expenses expired for factory overhead, $27,890; for selling expenses, $23,650; and for administrative expenses, $16,980 f. Depreciation of office building was $81,250; of office equipment, $41,230; and of factory equipment, $27,890 g. Factory overhead costs applied to jobs, $345,600 h. Jobs completed, $800,330 i. Cost of goods sold, $776,080 Required: Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

Entries for Costs in a Job Order Cost System Munson Co. uses a job order cost system. The following data summarize the operations related to production for July: a. Materials purchased on account, $606,310 b. Materials requisitioned, $509,300, of which $66,210 was for general factory use c. Factory labor used, $624,500, of which $118,660 was indirect d. Other costs incurred on account for factory overhead, $145,510; selling expenses, $224,330; and administrative expenses, $133,390 Prepaid expenses expired for factory overhead, $27,890; for selling expenses, $23,650; and for administrative expenses, $16,980 f. Depreciation of office building was $81,250; of office equipment, $41,230; and of factory equipment, $27,890 g. Factory overhead costs applied to jobs, $345,600 h. Jobs completed, $800,330 i. Cost of goods sold, $776,080 Required: Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 1PA: Barnes Company uses a job order cost system. The following data summarize the operations related to...

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Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
Leen Production Co. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of May: a. Compute the total production cost of each job. b. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. c. Compute the selling price per unit for each job, assuming a mark-on percentage of 40%. d. Prepare the journal entries to record the sale of Job 1065.
Summary information from a companys job cost sheets shows the following information: What are the balances in the work in process inventory, finished goods Inventory, and cost of goods sold for April, May, and June?
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at $1.25 for each direct labor dollar spent. What is the total cost for each of the jobs?
Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of March: a. Compute the total production cost of each job. b. Prepare the journal entries to charge the costs of materials, labor, and factory overhead to Work in Process. c. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. d. Compute the unit cost of each job. e. Compute the selling price per unit for each job, assuming a mark-on percentage of 50%.
Bangor Products Co. obtained the following information from its records for April: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for April: a. The gross profit or loss for each job completed and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)
Terrills Transmissions uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows: The following transactions were completed during November: a. Materials purchases on account during the month, 74,000. b. Materials requisitioned during the month: 1. Direct materials, 57,000. 2. Indirect materials, 11,000. c. Direct materials returned by factory to storeroom during the month, 1,100. d. Materials returned to vendors during the month prior to payment, 2,500. e. Payments to vendors during the month, 68,500. Required: 1. Prepare general journal entries for each of the transactions. 2. Post the general journal entries to T-accounts. 3. Balance the accounts and report the balances of November 30 for the following: a. Cash b. Materials c. Accounts Payable
Spokane Production Co. obtained the following information from its records for July: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for July: a. The gross profit or loss for each job completed and sold, and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)
Entries and schedules for unfinished jobs and completed jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, 147,000. B. Materials requisitioned and factory labor used: C. Factory overhead costs incurred on account, 6,000. D. Depreciation of machinery and equipment, 4,100. E. The factory overhead rate is 40 per machine hour. Machine hours used: F. Jobs completed: 101, 102, 103, and 105. G. Jobs were shipped and customers were billed as follows: Job 101, 62,900; Job 102, 80,700; Job 105, 45,500. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Rich Manufacturing Corporation had the following transactions for its job order costing operation. Prepare general journal entries to record these transactions. Jan. 1 Purchased materials on account, 22,000. 15 Issued direct materials to Job No. 1, 18,000. 20 Issued indirect materials (factory overhead), 3,000. 31 Incurred direct labor, Job No. 1, 11,000. 31 Incurred indirect labor (factory overhead), 4,000. 31 Incurred other indirect costs (factory overhead; credit Accounts Payable), 1,500.
The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
The following information, taken from the books of Herman Brothers Manufacturing represents the operations for January: The job cost system is used, and the February cost sheet for Job M45 shows the following: The following actual information was accumulated during February: Required: 1. Using the January data, ascertain the predetermined factory overhead rates to be used during February, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Prepare a schedule showing the total production cost of Job M45 under each method of applying factory overhead. 3. Prepare the entries to record the following for February operations: a. The liability for total factory overhead. b. Distribution of factory overhead to the departments. c. Application of factory overhead to the work in process in each department, using direct labor hours. (Use the predetermined rate calculated in Requirement 1.) d. Closing of the applied factory overhead accounts. e. Recording under- and overapplied factory overhead and closing the actual factory overhead accounts.