Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company’s Work in Process Inventory account for the month of June         Debits to account:       Balance, June 1 $ 5,000   Direct materials   18,000   Direct labor   12,000   Manufacturing overhead (applied to jobs as 125% of direct labor cost)   15,000   Total debits to account $ 50,000   Credits to account:       Transferred to Finished Goods Inventory account   44,000   Balance, June 30 $ 6,000     a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of production completed during June to the Finished Goods Inventory account. 3. The cash sale of 80 percent of the merchandise completed during June at a total sales price of $50,000. Show the related cost of goods sold in a separate journal ent

Gilkison Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below: Gilkison Corporation Balance Sheet October 1 Assets: Cash $ 10,150 Raw materials $ 3,750 Work in process 15,150 Finished goods 19,150 38,050 Property, plant, and equipment (net) 229,150 Total assets $277,350 Liabilities and Stockholders’ Equity: Accounts payable $ 15,075 Retained earnings 262,275 Total liabilities and stockholders’ equity $277,350 Summaries of the transactions completed during October appear below: (1) Raw materials purchased on account $ 66,150 (2) Raw materials used in production (direct materials) $ 50,150 (3) Raw materials used in production (indirect materials) $ 7,075 (4) Direct labor paid in cash $ 95,150 (5) Indirect labor paid in cash $ 25,150 (6) Selling and administrative salaries paid in cash $ 30,150 (7)…

Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of June: Debits to account: Balance, June 1 Direct materials Direct labor Manufacturing overhead (applied to jobs as 125% of direct labor cost) Total debits to account Credits to account: Transferred to Finished Goods Inventory account Balance, June 30 Required: $ 5,000 18,000 12,100 15,125 $ 50,225 44,000 $ 6,225 a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,500, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of…

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.

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Louisiana Metals uses a job costing system. The company applies manufacturing overhead using a predetermined rate based on direct labor cost. The following debits (credits) appeared in the Work-in-Process Inventory for June. June 1 For the month For the month For the month For the month Balance Direct labor Direct materials Manufacturing overhead To finished goods Beginning inventory ??? $ 33,000 43, 200 19,800 (78,700) Job LM-12, the only job still in production at the end of June, has been charged $13,200 in direct materials cost and $12,400 in direct labor cost. Required: What was the beginning balance in Work-in-Process Inventory?

Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations:   a. Materials purchased on account, $28,790.   b. Materials requisitioned and factory labor used:   Job Materials Factory Labor 301 $2,880 $2,910 302 3,690 3,860 303 2,300 1,780 304 7,820 6,990 305 5,310 5,050 306 3,700 3,280 For general factory use 1,070 4,180     c. Factory overhead costs incurred on account, $5,600.   d. Depreciation of machinery and equipment, $1,970.   e. The factory overhead rate is $53 per machine hour. Machine hours used:   Job Machine Hours 301 25 302 34 303 30 304 71 305 42 306 26 Total 228     f. Jobs completed: 301, 302, 303 and 305.   g. Jobs were shipped and customers were billed as follows: Job 301, $8,270; Job 302, $11,720; Job 303, $15,730.     Required: 1. Journalize the entries to record the summarized…

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost Compute the following amounts for the month of May using T-accounts. 1. Cost of direct materials used. 2. Cost of direct labor used. 3. Cost of goods manufactured. 4. Cost of goods sold.* 5. Gross profit. 6. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead. Raw Materials (RM) 0 Finished Goods (FG) Inventory April 30 $42,000 9,300 61,000 LA May 31 34,000 19,700 33,900 193,000 250,000 8,000 57,500 118,500 1,500,000 55% Work in Process (WIP) 0 Factory Overhead

Morrison Company uses job-order costing to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: Morrison Company Balance Sheet January 1 Assets Cash Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity $ 11,900 5,900 20,550 h. Manufacturing overhead applied to production, $141,000. i. Cost of goods manufactured, $293,800. j. Cash sales to customers, $401,720. k. Cost of goods sold (unadjusted), $289,800. 1. Cash payments to creditors, $77,200. m. Underapplied or overapplied overhead $? . Required: $ 34,800 During January the company completed the following transactions: a. Purchased raw materials on account, $90,800. b. Raw materials used in production, $93,600 ($78,600 was direct materials and $15,000 was indirect materials). c. Paid $195,100 of salaries and wages in cash ($110,200 was…