In: Accounting
IV. | AJ Smith Compay has the following beginning inventory balances at 1/1/2019 | |||||
Raw materials | $16,000 | |||||
WIP | $25,000 | all in Job 111 | ||||
FinishedGoods | $- | |||||
AJ Smith company had the following transactions in January. | ||||||
1. Purchased Raw Materials on account for 240,000 | ||||||
2. Salaries paid to factory workers was $70,000. All paid in cash. | ||||||
3. Factory rent of 60,000 and utility bills for 45,000 for the month were paid. | ||||||
and Depreciation on factory equipment was $95,000. | ||||||
4. Material and labor was charged to jobs in WIP as follows: | ||||||
Material | Labor | Machine Hours | ||||
Job 111 | 40,000 | 15,000 | 15,000 | |||
Job 112 | 70,000 | 25,000 | 23,000 | |||
Job 113 | 50,000 | 5,000 | 22,000 | |||
General use | 10,000 | 25,000 | ||||
Total | 170,000 | 70,000 | 60,000 | |||
Make a journal for the material and the labor costs to jobs (2 Journals) | ||||||
5. Manufacturing overhead is applied at a rate of $4 per machine hour. There | ||||||
were 60,000 machine hours in the month. Make the entry to apply overhead. | ||||||
6. Jobs 111 and 112 were completed and transferred to finished Goods | ||||||
7. Job 111 was sold for $200,000. Make the journals for this. | ||||||
8. What is the over or under applied overhead amount ________________ | ||||||
over or under__________________ | ||||||
9. What is the total ending inventory incl RM, WIP and FG at 1/31/2019 | ||||||
(Remember to count beginning inventory) |
Please do 1-9