Question

1. During January, its first month of operations, Bridgeport Company accumulated the following manufacturing costs: raw materials purchased $4,800 on account, factory labor $7,900, and utilities payable $2,700.

(a) Record the company’s manufacturing costs in its job order costing system.

2. During January, its first month of operations, Flounder Company accumulated the following manufacturing costs: raw materials purchased $5,300 on account, factory labor $7,400, and utilities payable $3,100. In January, requisitions of raw materials for production are as follows: Job 1 $960, Job 2 $1,400, Job 3 $760, and general factory use $620.

(a) Record raw materials used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

3. The gross earnings of the factory workers for Concord Company during the month of January are $73,000. Of the total accumulated cost of factory labor, 81% is related to direct labor and 19% is attributable to indirect labor.

(a)		Record the factory labor costs for the month of January.
(b)		Assign factory labor to production.

Answer 1

1
		Raw materials Inventory	Factory labor	Manufacturing overhead
	Purchased raw materials	$ 4,800
	Incurred factory labor		$ 7,900
	Factory utilities			$ 2,700
	Balance	$ 4,800	$ 7,900	$ 2,700
2
	Work in Process Inventory a/c [960+1400+760]	Dr	$ 3,120
	Manufacturing overheads a/c		Dr	$620
	To Raw materials Inventory			$3,740
	( To record raw materials used)
3		Manufacturing Costs
		Raw materials Inventory	Factory labor	Manufacturing overhead	WIP Inventory
	Incurred Factory Labor		73,000
	Direct Labor		-59,130		59,130
	Indirect labor		-13,870	13,870
	Balance	0	0	13,870	59,130