Question

Collegiate Publishing Inc. began printing operations on March 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, $7,500 of indirect materials and $11,800 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		Job 302
Direct materials	$10,500	Direct materials	$21,600
Direct labor	7,200	Direct labor	15,600
Factory overhead	4,752	Factory overhead	10,296
Total	$22,452	Total	$47,496

Job 303		Job 304
Direct materials	$23,800	Direct materials	$15,900
Direct labor	19,100	Direct labor	14,000
Factory overhead	—	Factory overhead	—

Required:

Journalize the Mar. 31 summary entries to record each of the following operations for March (one entry for each operation). Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.   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.

X

Chart of Accounts

CHART OF ACCOUNTS
Collegiate Publishing Inc.
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory   LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable   EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue   EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 560 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense

X

Journal

Journalize the Mar. 31 summary entries to record each of the following operations for March (one entry for each operation). Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.   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

Question	Account	Account Titles and Explanations	Debit ($)	Credit ($)
a	132	Work in Process A/c Dr	$71,800
	133	Factory Overhead A/c Dr	$7,500
	131	To Materials		$79,300
b	132	Work in Process A/c Dr	$55,900
	133	Factory Overhead A/c Dr	$11,800
	251	To Wages Payable		$67,700
c (note 1)	132	Work in Process A/c Dr	$36,894
	133	To Factory Overhead A/c		$36,894
d (note 2)	134	Finished Goods A/c Dr	$69,948
	132	To Work in Process A/c		$69,948

Note 1 :

 

Job 301 = 4752 / 7200 = 66%

Job 302 = 10296 / 15600 = 66%

 

$ 55,900 x 66% = $ 36894

 

Note 2 :

 

Cost attributable = $ 22452 + $ 47496 = $ 69948

Journal entries required have been provided as asked.