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In: Accounting
Entries for Direct Labor and Factory Overhead Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses...
Entries for Direct Labor and Factory Overhead
Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:
| Job 11-101 | $2,240 |
| Job 11-102 | 1,520 |
| Job 11-103 | 1,200 |
| Job 11-104 | 1,830 |
| Job 11-105 | 1,200 |
| Factory supervision | 1,040 |
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $17 per hour.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
| Work in Process | |||
| Factory Overhead | |||
| Wages Payable |
b. Journalize the entry to apply factory overhead to production for June. If an amount box does not require an entry, leave it blank.
| Work in Process | |||
| Factory Overhead | |||
Solutions
Expert Solution
| Journal Entry | |||
| Account Titles | Debit | Credit | |
| a) | Work in Process Inventory ($17,680 + $135,830) | $153,510 | |
| Factory Overheads | $17,680 | ||
| Wages Payable | $135,830 | ||
| (To record the allocation of factory labor costs) | |||
| Journal Entry | |||
| Account Titles | Debit | Credit | |
| b) | Work in Process | $270,900 | |
| Factory Overheads | $270,900 | ||
| (To record the application of factory overheads to jobs) | |||
| Working notes: | |||
| Direct labor costs: | Hours (a) | Rate (b) | Total Cost (a*b) |
| Job 11-101 | 2,240 | $17 | $38,080 |
| Job 11-101 | 1,520 | $17 | $25,840 |
| Job 11-101 | 1,200 | $17 | $20,400 |
| Job 11-101 | 1,830 | $17 | $31,110 |
| Job 11-101 | 1,200 | $17 | $20,400 |
| Total direct labor costs | $135,830 | ||
| Factory supervison | 1,040 | $17 | $17,680 |
| Factory Overhead Costs | Hours (a) | Rate (b) | Total Cost (a*b) |
| Job 11-101 | 2,240 | $30 | $67,200 |
| Job 11-101 | 1,520 | $30 | $45,600 |
| Job 11-101 | 1,200 | $30 | $36,000 |
| Job 11-101 | 1,830 | $30 | $54,900 |
| Job 11-101 | 1,200 | $30 | $36,000 |
| Factory supervison | 1,040 | $30 | $31,200 |
| Total factory overheads applied | $270,900 | ||
ekkarill92 answered 4 months agoRelated Solutions
Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a...
Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles.
Townsend uses a job order cost system. The time tickets from
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Job 201
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Job 202
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Job 203
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Job 204
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Factory supervision
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Factory overhead is applied to jobs on the basis of a
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If required, round final answers to the...
I'll rate Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend...
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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 201
$3,610
Job 202
1,800
Job 203
1,420
Job 204
2,660
Factory supervision
1,230
Factory overhead is applied to jobs on the basis of a
predetermined overhead rate of $20 per direct labor hour. The
direct labor rate is $13 per hour.
If required, round final answers...
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226,200 lbs. at $5.60
223,900 lbs. at $5.50
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