Question

1. During January, its first month of operations, Marigold Company accumulated the following manufacturing costs: raw materials purchased $5,000 on account, factory labor $7,000, and utilities payable $2,100. In January, requisitions of raw materials for production are as follows: Job 1 $970, Job 2 $1,400, Job 3 $760, and general factory use $640. During January, time tickets show that the factory labor of $7,000 was used as follows: Job 1 $2,330, Job 2 $1,750, Job 3 $1,700, and general factory use $1,220.

Record factory labor used. (Post material transactions to beginning balances. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2. In March, Oriole Company completes its only two jobs in process, Jobs 10 and 11. Job 10 cost $30,000 and Job 11 $34,300. On March 31, Job 10 is sold.

Record the completion of the two jobs and the sale of Job 10. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

General Journal	Debit	Credit
Factory Labor	7,000
Factory Labor Payable		7,000
(To accrue Factory Labor)
Work in process inventory (Job 1, Job 2 & Job 3) (970+1400+760)	3,130
Factory Labor		3,130
(To record Factory Labor Used)
General Journal	Debit	Credit
Finished goods inventory (Job 10 & 11) (30000+34300)	64,300
Work in process inventory		64,300
Cost of goods sold (Job 10)	30,000
Finished goods inventory		30,000
Cash (Job 10)	30,000		(Since the sale of Job 10 is not mentioned it is assumed, it is sold at cost)
Sales		30,000