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b) State the journal entries necessary to record the following transactions in the general journal. (i) Total materials issued to production (ii) Manufacturing labour incurred (iii)Assign manufacturing labour to the appropriate accounts

b) State the journal entries necessary to record the following transactions in the general journal. (i) Total materials issued to production (ii) Manufacturing labour incurred (iii)Assign manufacturing labour to the appropriate accounts

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PA: The following product costs are available for Arrez Company on the production of DVD cases: direct...
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b) State the journal entries necessary to record the following transactions in the general journal.
(i) Total materials issued to production
(ii) Manufacturing labour incurred
(iii)Assign manufacturing labour to the appropriate accounts

GROUP Assignment _ Product Costing PART 1 (25 marks) Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. Exclusive's predetermined overhead rate for 2020 was computed from the following data: Total estimated factory overhead $2,400,000 $2,000,000 Total estimated direct labour cost The WIP account given below relates to the activities of Exclusive Souvenirs for the month of June: WIP Inventory A/C June 1 Balance b/f $15,000 Direct Materials Used 123,000 Additional data: • Total material requisitioned. • Manufacturing Labour Costs incurred • Other manufacturing overheads incurred • Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to the hotel on account at a margin of 33 1/3% on sales. $153,000 $163,500 (75% represents direct labour) $94,275
Transcribed Image Text:GROUP Assignment _ Product Costing PART 1 (25 marks) Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. Exclusive's predetermined overhead rate for 2020 was computed from the following data: Total estimated factory overhead $2,400,000 $2,000,000 Total estimated direct labour cost The WIP account given below relates to the activities of Exclusive Souvenirs for the month of June: WIP Inventory A/C June 1 Balance b/f $15,000 Direct Materials Used 123,000 Additional data: • Total material requisitioned. • Manufacturing Labour Costs incurred • Other manufacturing overheads incurred • Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to the hotel on account at a margin of 33 1/3% on sales. $153,000 $163,500 (75% represents direct labour) $94,275
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