Question

In: Accounting

Minstrel Manufacturing uses a job order costing system. Duringone month Minstrel purchased $198,000 of raw...

Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the application of factory overhead to production is:

Solutions

Expert Solution

 

Journal : Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000.

Workings:

Direct labor = Total labor cost - Indirect labor = 150,000 - 40,000 =110,000

Applied factory overhead = 110,000 * 150% = 165,000

Journal entry

Account Titles Debit Credit
Work in Process Inventory 165000  
Factory Overhead   165000

Related Solutions

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel’s beginning and ending Work in Process Inventory are $15,500 and $27,000 respectively. Compute the cost of product transferred to Finished Goods Inventory:
Portside Watercraft uses a job order costing system. During one month Portside purchased $153,000 of raw...
Portside Watercraft uses a job order costing system. During one month Portside purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect. Portside incurred a factory payroll of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the application of factory overhead to production is:
Madison Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased...
Madison Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials). Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. Depreciation recorded on factory equipment, $40,000. Other manufacturing overhead costs accrued during October, $70,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were...
The Searider Company uses a job-order costing system. The following transactions occurred in April: a. Raw...
The Searider Company uses a job-order costing system. The following transactions occurred in April: a. Raw materials were purchased on account, $180,000. b. Raw materials used in production, $148,000 ($130,000 direct materials and $18,000 indirect materials). c. Accrued direct labor cost of $75,000 and indirect labor cost of $105,000. d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs accrued during April, $118,000. f. The company applies manufacturing overhead cost to production using a predetermined overhead rate of...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $209,000. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,200 machine-hours...
Question: The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw...
Question: The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw materials were purchased on account, $180,000. Raw materials used in production, $148,000 ($130,000 direct materials and $18,000 indirect materials). Accrued direct labor cost of $75,000 and indirect labor cost of $105,000. Depreciation recorded on factory equipment, $40,000. Other manufacturing overhead costs accrued during April, $118,000. The company applies manufacturing overhead cost to production using a predetermined overhead rate of $6 per machine-hours. A total...
The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw materials...
The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw materials were purchased on account, $180,000. Raw materials used in production, $148,000 ($130,000 direct materials and $18,000 indirect materials). Accrued direct labor cost of $75,000 and indirect labor cost of $105,000. Depreciation recorded on factory equipment, $40,000. Other manufacturing overhead costs accrued during April, $118,000. The company applies manufacturing overhead cost to production using a predetermined overhead rate of $6 per machine-hours. A total of...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $209,000. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $106,000. Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,200 machine-hours...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $48,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $106,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machine-hour. A total of 76,400 machine-hours...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $211,000. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $20,000. Depreciation recorded on factory equipment, $106,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,300 machine-hours...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT