I. The Trend Furniture Corp. started its operations in 2009. It uses the job order costing method. The following transactions are: a. Materials purchases on account, P100,000. b. Materials issued: Job Order No. 001 P15,000 002 26,000 003 12,500 c. Indirect materials issued, P10,500. d. Breakdown of payroll includes indirect labor, P15,600 and direct labor charged as follows: Job Order No. 001 P10,500 002 16,000 003 9,500 e. Factory overhead charged to production, 80% of direct labor cost. f. Jobs 001 and 002 are completed. g. Actual factory overhead amounts to P28,400.

I. The Trend Furniture Corp. started its operations in 2009. It uses the job order costing method. The following transactions are: a. Materials purchases on account, P100,000. b. Materials issued: Job Order No. 001 P15,000 002 26,000 003 12,500 c. Indirect materials issued, P10,500. d. Breakdown of payroll includes indirect labor, P15,600 and direct labor charged as follows: Job Order No. 001 P10,500 002 16,000 003 9,500 e. Factory overhead charged to production, 80% of direct labor cost. f. Jobs 001 and 002 are completed. g. Actual factory overhead amounts to P28,400.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PB: The following data summarize the operations during the year. Prepare a journal entry for each...

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The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
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