FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Wildwing entertainment Inc. is a manufacturer that uses a job cost system. THE FOLLOWING data summarize the operations related to production for march , the first month of operations:
A. Materials purchased on account, $15,500
B. Materials requisitioned and labor used.
Job no. Materials factory labor
100 $2.650 $1,770
101 1,240 650
102 980 420
103 3,420 1,900
104 1,000 500
105 2,100 1,760
For general factory use
450 650
C. Factory overhead costs incurred on account, $2,700
D. Depreciation of machinery, $1,750
E. Factory overhead is applied at a rate 70% of direct lbor cost.
F. Jobs completed: Nos. 100, 101, 102, 104
G. Jobs 100, 101, and 102 were shipped, and customers were billed for $8,100, $3,800 and $3,500, respectively.
Instructions:
1. Journalize the entries to record the transactions.
2. Determine the account balances for work in process and finished goods.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of jobs on hand to support the balance in the finished goods account.
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