Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 49,900 Job 202 25,300 Total direct materials 75,200 Indirect materials 10,320 Total materials used $ 85,520 Time tickets show the following labor used for the month. Job 201 $ 40,900 Job 202 14,300 Total direct labor 55,200 Indirect labor 25,900 Total labor used $ 81,100 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,700 Rent on factory building (payable) 670 Factory utilities (payable) 970 Expired factory insurance 4,700 Total other factory overhead costs $ 40,040
Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 49,900 Job 202 25,300 Total direct materials 75,200 Indirect materials 10,320 Total materials used $ 85,520 Time tickets show the following labor used for the month. Job 201 $ 40,900 Job 202 14,300 Total direct labor 55,200 Indirect labor 25,900 Total labor used $ 81,100 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,700 Rent on factory building (payable) 670 Factory utilities (payable) 970 Expired factory insurance 4,700 Total other factory overhead costs $ 40,040
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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Information on Kwon Manufacturing’s activities for its first month of operations follows:
- Purchased $101,700 of raw materials on credit.
- Materials requisitions show the following materials used for the month.
Job 201 | $ 49,900 |
---|---|
Job 202 | 25,300 |
Total direct materials | 75,200 |
Indirect materials | 10,320 |
Total materials used | $ 85,520 |
- Time tickets show the following labor used for the month.
Job 201 | $ 40,900 |
---|---|
Job 202 | 14,300 |
Total direct labor | 55,200 |
Indirect labor | 25,900 |
Total labor used | $ 81,100 |
- Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
- Transferred Job 201 to Finished Goods Inventory.
- (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201.
- Incurred the following actual other overhead costs for the month.
$ 33,700 | |
Rent on factory building (payable) | 670 |
Factory utilities (payable) | 970 |
Expired factory insurance | 4,700 |
Total other |
$ 40,040 |
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