Concept explainers
Luna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the plant. Prior to June 1, the predetermined
The factory has one production department and uses the direct labor hour method to apply factory overhead.
Three jobs are started during the month, and postings are made daily to the
The factory overhead control account was debited during the month for actual factory overhead expenses of $27,000. On June 11, Job 2526 was completed and delivered to the customer using a mark-on percentage of 50% on
Required:
- 1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including factory overhead applied when the job was completed or at the end of the month for partially completed jobs.
- 2. Prepare
journal entries as of June 30 for the following:- a. Applying factory overhead to production.
- b. Closing the applied factory overhead account.
- c. Closing the factory overhead account.
- d. Transferring the cost of the completed jobs to finished goods.
- e. Recording the cost of the sale and the sale of Job 2526.
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Chapter 4 Solutions
Principles of Cost Accounting
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