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

ekkarill92 answered 11 months ago

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