Question

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,400 of indirect materials and $13,700 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301
Direct materials	$10,100
Direct labor	8,500
Factory overhead	5,950
Total	$24,550

Job 302
Direct materials	$19,000
Direct labor	16,200
Factory overhead	11,340
Total	$46,540

Job 303
Direct materials	$23,700
Direct labor	16,300
Factory overhead	—

Job 304
Direct materials	$12,700
Direct labor	11,800
Factory overhead	—

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles. A. Direct and indirect materials used. B. Direct and indirect labor used. C. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). D. Completion of Jobs 301 and 302.

Answer 1

JOURNAL ENTRIES
S.NO.	ACCOUNTS TITLE AND EXPLANATIONS					DEBIT $	CREDIT $
A.	Work in Process- Job no. 301 Dr.					10100
	Work in process-Job no. 302 dr.					19000
	Work in process- Job No. 303 Dr.					23700
	Work in process-Job no. 304 Dr.					12700
	Factory Overheads Account Dr.					8400
	Raw material Inventory						73900
B.	Work in Process- Job no. 301 Dr.					8500
	Work in process-Job no. 302 dr.					16200
	Work in process- Job No. 303 Dr.					16300
	Work in process-Job no. 304 Dr.					11800
	Factory Overheads Account Dr.					13700
	Factory Wages						66500
C.	Work in Process- Job no. 301 Dr.					5950
	Work in process-Job no. 302 dr.					11340
	Work in process- Job No. 303 Dr.					11410
	Work in process-Job no. 304 Dr.					8260
	Factory Overheads						36960
D.	Finished Goods Inventory Dr.					71090
	Work in process-Job No. 301						24550
	Work in Process-Job No. 302						46540