Journal entries for jobs work.

(1) Post relevant journal entries for Job 306, Job 307 and Job 308 for the month of April.

(2) Calculate cost of goods sold for Job 306.

(3) Calculate overapplied or underapplied overhead.

9,500 Kelley Company shows the following costs for three jobs worked on in April, Job 300 Job 307 Job 308 Balances on March 3

Solutions

Expert Solution

(1) Journal Entries -

No. Debit Credit Date April 30 a. $502,000 Account titles and explanation Raw materials inventory Accounts payable (To record

Workings -

(1) Finished goods= Job 306+Job 307

Job 306= Direct materials+Direct labor+Manufacturing overhead
= $31000+137000+22000+89000+11000+(89000*50%)= $334,500

Job 307= $38000+223000+19000+155000+9500+(155000*50%)= $522,000

Finished goods= $334,500+522,000= $856,500

----------
(2) Cost of goods sold for Job 306= Direct materials+Direct labor+Manufacturing overhead=

= $31000+137000+22000+89000+11000+(89000*50%)

= $334,500

-----------

(3) Calculation of overapplied or underapplied -

Actual overhead = Indirect materials+Indirect labor+Factory rent+Factory utilities+Factory equipment depreciation = $51000+24000+33000+20000+53000 = $181,000

Applied overhead = Direct labor paid * 50% = ($89000+155000+106000) * 50% = $175,000

Overapplied or underapplied = Actual overhead - Applied overhead

= $181,000 -175,000 = $6,000 underapplied

------------------

(1) Jounal entries in explanation.

(2) Cost of goods sold for Job 306 = $334,500

(3) Overapplied or underapplied = $6,000 underapplied

Nikita Chaplot answered 2 years ago

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