Question

In: Accounting

Darden Manufacturing uses a job order cost accounting system. On April 1, the company has Work...

Darden Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,600 and two jobs in process: Job No. 221, $3,600, and Job No. 222, $4,000. During April, a summary of source documents reveals the following: For Materials Requisition Slips Labor Time Tickets Job. No. 221 $2,200 $3,600 222 1,700 3,200 223 2,400 2,900 224 2,100 2,800 General use 600 400 Totals $9,000 $12,900 Darden applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 221 is completed during the month. Instructions Prepare summary journal entries to record the raw materials requisitioned, factory labor used, the assignment of manufacturing overhead to jobs, and the completion of Job No. 221.

Calculate the balance of the Work in Process Inventory account at April 30.

Solutions

Expert Solution

Journal entries:
Accounts title and explanations Debit $ Credit $
Work in Process Inventory Dr. (2200+1700+2400+2100) 8400
Factory Overheads Account Dr. 600
     Raw material Inventory 9000
Workin Process Inventory Dr, (3600+3200+2900+2800) 12500
Factory Overheads Account Dr. 400
     Factory Wages 12900
Work in Process Inventory Dr. (12500*60%) 7500
     Factory Overheads Account 7500
Finished Goods Inventory Dr. 11,560
     Work in process inventory 11560
WORK IN PROCESS INVENTORY-REFINING
Balance 7,600 Finished Goods Inventory 11,560
Raw material Inv. 8,400
Wages Payable 12,500
Manufacturing Overheads 7,500
Balance 24,440
Note: Cost of Job 221:
beginning balance 3600
Add: material incurred 2200
Add: labour cost 3600
Add: OH applied (3600*60%) 2160
Total cost of Job No. 221 11560

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company...
Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed). During January, the company had the following transactions: (a) Purchased $60,000 worth of materials on account. (b) Recorded materials issued to production as follows: Job Number Total Cost 201...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $51,700 and its total manufacturing overhead cost to be $98,230. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 2. Fill in the missing values in...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $54,800 and its total manufacturing overhead cost to be $98,640. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2....
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,300 and its total manufacturing overhead cost to be $90,540.      Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:             Required: 1. Calculate the predetermined overhead rate.                  2. Fill in...
Job-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead...
Job-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $135,000 for the year and the estimated direct labor hours were 15,000 hours. In May, Job #378 was completed. Direct materials totaled $8,500. Total labor costs were $14,000 at $16 per hour. At the end of the year, it was determined that the company worked 16,000 direct labor...
Stine Company uses a job order cost system. On May 1, the company has a balance...
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $ 3,910 and two jobs in process: Job No. 429 $ 2,460, and Job No. 430 $ 1,450. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 $ 2,900 $ 2,060 430 3,940 3,130 431 4,670 $ 11,510 7,760 $ 12,950 General use 950 1,370 $ 12,460 $...
Ivanhoe Company uses a job order cost system. On May 1, the company has a balance...
Ivanhoe Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,940 and two jobs in process: Job No. 429 $2,160, and Job No. 430 $1,780. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 $2,770 $2,100 430 3,910 3,300 431 4,920 $11,600 8,200 $13,600 General use 940 1,460 $12,540 $15,060 Ivanhoe Company applies manufacturing overhead to jobs at...
Cullumber Company uses a job order cost system. On May 1, the company has a balance...
Cullumber Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,770 and two jobs in process: Job No. 429 $2,430, and Job No. 430 $1,340. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 $2,940 $2,300 430 3,850 3,400 431 4,680 $11,470 8,200 $13,900 General use 940 1,570 $12,410 $15,470 Cullumber Company applies manufacturing overhead to jobs at...
Stine Company uses a job order cost system. On May 1, the company has a balance...
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,900 and two jobs in process: Job No. 429 $2,450, and Job No. 430 $1,450. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 $3,000 $2,200 430 3,730 3,400 431 4,710 $11,440 8,200 $13,800 General use 980 1,330 $12,420 $15,130 Stine Company applies manufacturing overhead to jobs at...
Stine Company uses a job order cost system. On May 1, the company has a balance...
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 2,500 1,900 430 3,500 3,000 431 4,400 10,400 7,600 12,500 General use 800 1,200 11,200 13,700 Stine Company applies manufacturing overhead to jobs at...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT