Question

1. Please make all appropriate journal entries for the following operations related to a

manufacturing firm for the month of June.

Assume Beginning WIP for Job A & B are $300 & $500, respectively. Assume Ending WIP for Job A & B are $475 & $650, respectively.

• The company purchased $1,200 of materials (on account)
• The company used direct materials
  • Job A - $350
  • Job B - $200
• The company allocated their employee efforts towards direct labor on two jobs
  • Job A - $2,300
  • Job B – $3,100
• The company estimates a total of $240,000 in O/H over the next year. The company uses

machine hours to allocate O/H and estimates 1,600 machine hours over the next year.

• In June, the company had the following machine hours
  • Job A – 20 hours
  • Job B – 10 hours
• The company used $400 indirect materials & $2,000 indirect labor
• The company incurred $1,200 depreciation on factory equipment, $500 depreciation on

office space & $300 of factory utilities

• Be sure to record the completion of Work in Process Inventory
• Be sure to record your end of period adjustment to address under or over applied overhead

Answer 1