Question

Instructions Chart of Accounts Journal X Instructions Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,800 of indirect materials and $11,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

.

Job 301		Job 302
Direct materials	$10,700	Direct materials	$18,400
Direct labor	7,200	Direct labor	16,400
Factory overhead	6,192	Factory overhead	14,104
Total	$24,092	Total	$48,904

Job 303		Job 304
Direct materials	$25,900	Direct materials	$15,900
Direct labor	19,500	Direct labor	10,100
Factory overhead	—	Factory overhead	—

PAGE 10

JOURNAL

Score: 18/125

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Accounts Payable		?	?
2		Utilities Payable		?	?
3		Notes Payable		?	?
4		Interest Payable		?	?
5		Lease Payable		?	?
6		Wages Payable		?	?
7		Consultant Fees Payable		?	?
8	?
9		?
10		?

Answer 1

Date	Account Titles and Explanation	Debit (in $)	Credit (in $)
a.	Work in Progress	$ 70,900
	Factory overhead	$ 7,800
	Raw material inventory		$ 78,700
	(To record the Direct and Indirect materials Used)
b.	Work in progress	$ 53,200
	Factory overhead	$ 11,100
	Wages payable		$ 64,300
	(To record the Direct and indirect labor Used)
c.	Work in progress	$ 45,752
	Factory overhead		$ 45,752
	(To record the factory Overhead applied)
d.	Finished goods ( $ 24,092 + $ 48,904)	$ 72,996
	Work in progress		$ 72,996
	(To record the Completion of Jobs)

Workings:
	Job 301	Job 302	Job 303	Job 304	Total
Direct material	$ 10,700	$ 18,400	$ 25,900	$ 15,900	$ 70,900
Direct labor	$ 7,200	$ 16,400	$ 19,500	$ 10,100	$ 53,200
Factor overhead	$ 6,192	$ 14,104	$ 16,770 ( $ 19,500 x 86% )	$ 8,686 ($ 10,100 x 86% )	$ 45,752
Total	$ 24,092	$ 48,904
Overhead rate = Factory overhead / Direct labor cost	86% ($ 6,1,92 / $ 7,200 )	86% ($ 14,104 / $ 16,400)