Question

Job Order Costing Practice Problem 3 At the beginning of the current year, Maple Products had the following inventory amounts on its balance sheet: Raw materials $12,000 Work in process 20,000 Finished goods 35,000 Maple Products estimated that it would incur $60,000 in manufacturing overhead during the year, and that it would operate at a level of 15,000 direct labor hours. During the current year, the following transactions were completed:

A. Purchased raw material on account, $8,000.

B. Raw materials were issued to production, $16,000. 90% of these materials were direct, and 10% were indirect.

C. Factory payrolls were paid, $49,000. 80% of the factory payroll was direct labor, and 20% was indirect labor. 14,000 direct labor hours were worked.

D. Administrative payrolls were paid, $12,00. Sales payrolls were paid, $10,000.

E. Depreciation on factory equipment, $8,000.

F. Factory utilities paid, $7,000.

G. Various administrative expenses incurred and paid, $20,000

H. Various selling expenses incurred and paid, $15,000.

I. Various manufacturing overhead costs incurred and paid (other than those indicated above), $30,000.

J. Manufacturing overhead was applied to production.

K. Completed production for the current year, $106,600.

I NEED HELP WITH JOURNAL ENTRIES

Answer 1

	predetermined overhead rate
	60,000/15000
	4	per DLH's
	Journal Entries
	no	Account titles & Explanations					Debit	Credit
	a.	Raw materials inventory					8,000
		Accounts payable						8,000
	b.	Work in process inventory					14400
		Manufacturing overhea					1,600
		Raw materials inventory						16,000
	c.	Work in process inventory					39200
		Manufacturing overhea					9800
		Factory payroll/cash						49,000
	d.	Administrative salaries					12,000
		sales salaries					10,000
		Factory payroll/cash						22,000
	e.	Manufacturing overhead					8,000
		Accumulated depreciation						8,000
	f.	Manufacturing overhead					7,000
		cash						7,000
	g.	Administrative expense					20,000
		cash						20,000
	h.	Selling expense					15,000
		cash						15,000
	i.	manufacturing overhead					30,000
		cash						30,000
	j.	Work in process inventory					56000
		manufacturing overhead (14000*4)						56,000
	k.	Finished goods inventory					106,600
		work in process inventory						106,600
		Factory payroll is paid so prefer to enter cash account, incase that option
		is not available then only credit factory payroll