Question

In: Accounting

Please prepare journal entries for the following cost flows. (1). Sharon Company uses job-order costing system....

Please prepare journal entries for the following cost flows.

(1). Sharon Company uses job-order costing system. In July, direct labor cost incurred $90,000 and indirect labor cost incurred $80,000.

(2). Sharon Company Job costing $52,000 according to their job cost sheets were completed during July and transferred to Finished Goods.

(3). Sharon Company sold the $38,000 in Finished Goods Inventory to customers for $52,000 on account.

(4). Process Cost Flows: The Flow of Applied Manufacturing Overhead Costs. Applied manufacturing overhead cost: bottling Department $65,000; and labelling Department $45,000

(5). Process Cost Flows: Transferred incomplete bottle water from the Bottling Department to the Labelling Department: $850,000

Solutions

Expert Solution

(1) Dr. Work-in-process inventory (direct) $90,000

Dr. Manufacturing overhead (indirect) $80,000

Cr. Wages and salaries payable $170,000

(Direct and Indirect Labour cost incurred)

(2) Dr. Finished goods inventory $52,000

Cr. Work-in-process inventory   $52,000

(Goods completed and transferred to finished goods)

(3) Dr. Accounts receivable $52,000

Cr. Sales $52,000

Dr. Cost of goods sold $38,000

Cr. Finished goods inventory $38,000

(Goods sold on account)

(4) Dr. Work-In-Progress Inventory: Bottling Department $65,000

  Dr. Work-In-Progress Inventory: Labelling Department $45,000

Cr. Manufacturing Overhead $110,000

(Applied manufacturing overhead cost to both departments)

(5) Dr. Work-In-Progress Inventory: Labelling Department $850,000

Cr. Work-In-Progress Inventory: Bottling Department $850,000

(Transferred incomplete bottle water from Bottling to Labelling

Department)

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Prepare entries in a job order cost system and job cost sheets. Lott Company uses a...
Prepare entries in a job order cost system and job cost sheets. Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of...
Journal entries; assigning costs to jobs; cost accumulation Ialani Corp. uses a job order costing system...
Journal entries; assigning costs to jobs; cost accumulation Ialani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $332,400 Work in Process Inventory 1,512,600 Cost of Goods Sold 4,864,000 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $586,400 Job #78 266,600 Job #82 659,600 The following transactions occurred during September: 09-01 Purchased $1,940,000 of raw...
Ciarra’s Custom Coats uses a Job Order Costing System. Record the appropriate journal entries for the...
Ciarra’s Custom Coats uses a Job Order Costing System. Record the appropriate journal entries for the following job: 7-1: Hailey Bieber ordered a custom coat. 7-2: 20 yards of wool recquesitioned from the warehouse. The wool cost $200 per yard. 7-2 / 7-10: The Factory works on the Coat. Direct Labor charged 30 hours at $100 per hour. Manufacturing Overhead is allocated based on direct labor hours. The predetermined overhead rate is $50 per direct labor hour. 7-11: The coat...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $591,670. Materials requisitioned, $497,000, of which $64,610 was for general factory use. Factory labor used, $609,420, of which $115,790 was indirect. Other costs incurred on account for factory overhead, $142,000; selling expenses, $218,920; and administrative expenses, $130,170. Prepaid expenses expired for factory overhead were $27,220; for selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $820,330. Materials requisitioned, $689,080, of which $89,580 was for general factory use. Factory labor used, $844,940, of which $160,540 was indirect. Other costs incurred on account for factory overhead, $196,880; selling expenses, $303,520; and administrative expenses, $180,470. Prepaid expenses expired for factory overhead were $37,740; for selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $738,430. Materials requisitioned, $620,280, of which $80,640 was for general factory use. Factory labor used, $760,580, of which $144,510 was indirect. Other costs incurred on account for factory overhead, $177,220; selling expenses, $273,220; and administrative expenses, $162,450. Prepaid expenses expired for factory overhead were $33,970; for selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $492,950. Materials requisitioned, $414,080, of which $53,830 was for general factory use. Factory labor used, $507,740, of which $96,470 was indirect. Other costs incurred on account for factory overhead, $118,310; selling expenses, $182,390; and administrative expenses, $108,450. Prepaid expenses expired for factory overhead were $22,680; for selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $770,000. Materials requisitioned, $680,000, of which $75,800 was for general factory use. Factory labor used, $756,000, of which $182,000 was indirect. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. Prepaid expenses expired for factory overhead, $24,500; for selling expenses,...
Entries for Costs in a Job Order Cost System Velasco Co. uses a job order cost...
Entries for Costs in a Job Order Cost System Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July: Materials purchased on account, $695,900 Materials requisitioned, $584,560, of which $75,990 was for general factory use Factory labor used, $716,780, of which $136,190 was indirect Other costs incurred on account for factory overhead, $167,020; selling expenses, $257,480; and administrative expenses, $153,100 Prepaid expenses expired for factory overhead, $32,010; for selling expenses, $27,140;...
Entries for Costs in a Job Order Cost System Munson Co. uses a job order cost...
Entries for Costs in a Job Order Cost System Munson Co. uses a job order cost system. The following data summarize the operations related to production for July: Materials purchased on account, $732,780 Materials requisitioned, $615,540, of which $80,020 was for general factory use Factory labor used, $754,760, of which $143,400 was indirect Other costs incurred on account for factory overhead, $175,870; selling expenses, $271,130; and administrative expenses, $161,210 Prepaid expenses expired for factory overhead, $33,710; for selling expenses, $28,580;...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT