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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.
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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 | |||||
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