Question

Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production.

1.Materials purchased on account $192,000, and factory wages incurred $87,300.

2.Materials requisitioned and factory labor used by job:

Job Number	Materials	Factory Labor
A20	$?35,240	$18,000
A21	??42,920	?22,000
A22	??36,100	?15,000
A23	??39,270	?25,000
General factory use	???4,470	??7,300
	$158,000	$87,300

3.Manufacturing overhead costs incurred on account $49,500.

4.Depreciation on factory equipment $14,550.

5.Depreciation on the company's office building was $14,300.

6.Manufacturing overhead rate is 90% of direct labor cost.

7.Jobs completed during the quarter: A20, A21, and A23.

Instructions

Prepare entries to record the operations summarized above. (Prepare a schedule showing the individual cost elements and total cost for each job in item 7.)

Answer 1

		Factory	Factory	total
	Materials	labor	overhead
job No
A20	35,240	18,000	16200	69,440
A21	42,920	22,000	19800	84,720
A22	36,100	15,000	13500	64,600
A23	39,270	25,000	22500	86,770
total	153,530	80,000	72000	305,530
	journal Entries
No.	Account titles & Explanations				Debit	Credit
1)	Raw materials inventory				192,000
	Accounts payable					192,000
	Factory wages				87,300
	Factory wages payable					87,300
2)	Work in process		(153,530+80000)		233,530
	Factory overhead		(4,470+7,300)		11770
	Raw material inventory					158,000
	Factory wages					87,300
3)	Factory overhead				49,500
	Accounts payable					49,500
4)	Factory overhead				14,550
	Accumulated deprecaition					14,550
5)	Depreciation expense				14,300
	Accumulated depreciation					14,300
6)	work in process inventory				72000
	Factory overhead					72000
7)	Finished goods inventory				240,930
	work in process inventory					240,930