Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 2, Problem 2.1E
The gross earnings of the factory workers for Larkin Company during the month of January are $76,000. The employer’s payroll taxes for the factory payroll are $8,000. The
Instructions
(a) Prepare the entry to record the factory labor costs for the month of January.
(b) Prepare the entry to assign factory labor to production.
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The wages payable related to factory workers for Larkin Company during the month of January are $73,000. The employer's payroll taxes for the factory payroll are $9,200. The fringe benefits
to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% is attributable to indirect labor.
(a)
(b)
Prepare the entry to record the factory labor costs for the month of January.
Prepare the entry to assign factory labor to production.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
(a)
(b)
Debit
Credit
II
The
gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes
for the factory payroll are $80,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is
attributable to indirect labor.
(a)
Prepare the entry to record the factory labor costs for the month of January. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually.)
Account Titles and Explanation
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Debit
Credit
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(b)
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The gross earnings of factory workers for Blossom Company during the month of January are $320,000. The employer's payroll taxes
for the factory payroll are $64,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is
attributable to indirect labor.
(a)
Prepare the entry to record the factory labor costs for the month of January. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Your answer has been saved. See score details after the due date.
Account Titles and Explanation
(b)
(c)
Factory Labor
Payroll Liabilities
Your answer has been saved. See score details after the due date.
Account Titles and Explanation
Work in Process Inventory
Manufacturing Overhead
Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when the amount is entered.
Do not indent manually. List all debit entries before credit…
Chapter 2 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 2 - (a) Mary Barett is not sure about the difference...Ch. 2 - Prob. 2QCh. 2 - What type of industry is likely to use a job order...Ch. 2 - What type of industry is likely to use a process...Ch. 2 - Your roommate asks your help in understanding the...Ch. 2 - Prob. 6QCh. 2 - What source documents are used in accumulating...Ch. 2 - Entries to Manufacturing Overhead normally are...Ch. 2 - Stan Kaiser is confused about the source documents...Ch. 2 - What is the purpose of a job cost sheet?
Ch. 2 - Indicate the source documents that are used in...Ch. 2 - Explain the purpose and use of a materials...Ch. 2 - Sam Bowden believes actual manufacturing overhead...Ch. 2 - What elements are involved in computing a...Ch. 2 - Prob. 15QCh. 2 - Jane Neff believes that the cost of goods...Ch. 2 - Matt Litkee is confused about under- and...Ch. 2 - At the end of the year, under- or overapplied...Ch. 2 - Dicker Company begins operations on January 1....Ch. 2 - During January, its first month of operations,...Ch. 2 - In January, Dicker Company requisitions raw...Ch. 2 - Factory labor data for Dieker Company is given in...Ch. 2 - Data pertaining to job cost sheets for Dieker...Ch. 2 - Marquis Company estimates that annual...Ch. 2 - Assign manufacturing overhead to production.(LO...Ch. 2 - In March, Stinson Company completes Jobs 10 and...Ch. 2 - Prepare entries for service salaries and wages and...Ch. 2 - At December 31, balances in Manufacturing Overhead...Ch. 2 - During the current month, Wacholz Company incurs...Ch. 2 - Milner Company is working on two job orders. The...Ch. 2 - Washburn Company produces earbuds. During the...Ch. 2 - During the current month, Standard Corporation...Ch. 2 - For Eckstein Company, the predetermined overhead...Ch. 2 - The gross earnings of the factory workers for...Ch. 2 - Stine Company uses a job order cost system. On May...Ch. 2 - A job order cost sheet for Ryan Company is shown...Ch. 2 - Manufacturing cost data for Orlando Company, which...Ch. 2 - Ikerd Company applies manufacturing overhead to...Ch. 2 - Analyze job cost sheet aid prepare entry for...Ch. 2 - Crawford Corporation incurred the following...Ch. 2 - Enos Printing Corp. uses a job order cost system....Ch. 2 - At May 31, 2017, the accounts of Lopez Company...Ch. 2 - Tierney Company begins operations on April 1,...Ch. 2 - The following are the job cost related accounts...Ch. 2 - Determine cost of jobs end ending balance in work...Ch. 2 - Tombert Decorating uses a job order cost system to...Ch. 2 - Lott Company uses a job order cost system and...Ch. 2 - For the year ended December 31, 2017, the job cost...Ch. 2 - Prepare entries in a job order cost system and...Ch. 2 - Agassi Company uses a job order cost system in...Ch. 2 - Phillips Corporations fiscal year ends on November...Ch. 2 - Huegel Hollow Resort has ordered 20 rotomolded...Ch. 2 - Khan Products Company uses a job order cost...Ch. 2 - In the course of routine checking of all journal...Ch. 2 - Communication Activity You are the management...Ch. 2 - Prob. 2.5BYPCh. 2 - Prob. 2.6BYPCh. 2 - Prob. 2.7BYP
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- Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.arrow_forwardThe total wages and salaries earned by all employees of Langen Electronics, Ltd. during March, as shown in the labor cost summary and the schedule of fixed administrative and sales salaries, are classified as follows: a. Prepare a journal entry to distribute the wages earned during March. b. What is the total amount of payroll taxes that will be imposed on the employer for the payroll, assuming that two administrative employees with combined earnings this period of 3,000 have exceeded 8,000 in earnings prior to the period?arrow_forwardPrepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.arrow_forward
- R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)arrow_forwardA company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?arrow_forwardThe gross earnings of the factory workers for Waterway Company during the month of January are $86,000. The employer’s payroll taxes for the factory payroll are $9,500. The fringe benefits to be paid by the employer on this payroll are $5,300. Of the total accumulated cost of factory labor, 81% is related to direct labor and 19% is attributable to indirect labor.(a) Prepare the entry to record the factory labor costs for the month of January.(b) Prepare the entry to assign factory labor to production.arrow_forward
- During the current month, a company that uses job order costing incurred a monthly factory payroll of $180,000. Of this amount, $40,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions.arrow_forwardThe net earnings of the factory workers for Larkin Company during the month of January are $87,000. The employer's payroll taxes for the factory payroll are $9,400. The fringe benefits to be paid by the employer on this payroll are $5,000. Of the total accumulated cost of factory labor, 82% is related to direct labor and 18% is attributable to indirect labor. (a) Prepare the entry to record the factory labor costs for the month of January. (b) Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)arrow_forwardTotal factory labor costs related to factory workers for Sheridan Company during the month of January are $82,800. Of the total accumulated cost of factory labor, 80% is related to direct labor and 20% is attributable to indirect labor. (a) (b) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the January 31 entry to record the factory labor costs for the month of January. Prepare the January 31 entry to assign factory labor to production. No. Date (a) (b) Jan. 31 Jan. 31 Account Titles and Explanation Factory Labor Factory Wages Payable Work in Process Inventory Manufacturing Overhead Factory Labor Debit 66240.00 16560.00 Credit 66240.00 16560.00arrow_forward
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