Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,900 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 50,100 Job 202 25,500 Total direct materials 75,600 Indirect materials 10,520 Total materials used $ 86,120 Time tickets show the following labor used for the month. Job 201 $ 41,100 Job 202 14,500 Total direct labor 55,600 Indirect labor 26,100 Total labor used $ 81,700 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. Sold Job 201 for $169,460 on credit. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,900 Rent on factory building (payable) 690 Factory utilities (payable) 990 Expired factory insurance 4,900 Total other factory overhead costs $ 40,480Prepare journal entries to record the transactions reflected in items a through g. a.record materials purchase b(1). record direct materials used b(2).Record indirect materials used. c(1). Record direct labor used. c(2). Record indirect labor used. d. Record overhead applied to jobs at the rate of 80% of direct materials cost. e. Record the completion of Job 201. f(1).Record the sale of job 201 on credit f(2). Record the cost of job 201. g. Record other actual factory overhead costs.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PA: 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 $101,900 of raw materials on credit.
Materials requisitions show the following materials used for the month.

Job 201 $ 50,100

Job 202 25,500

Total direct materials 75,600

Indirect materials 10,520

Total materials used $ 86,120
Time tickets show the following labor used for the month.

Job 201 $ 41,100

Job 202 14,500

Total direct labor 55,600

Indirect labor 26,100

Total labor used $ 81,700
Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost.
Transferred Job 201 to Finished Goods Inventory.
Sold Job 201 for $169,460 on credit.

Job 201	$ 50,100
Job 202	25,500
Total direct materials	75,600
Indirect materials	10,520
Total materials used	$ 86,120

Job 201	$ 41,100
Job 202	14,500
Total direct labor	55,600
Indirect labor	26,100
Total labor used	$ 81,700

Incurred the following actual other overhead costs for the month.

Depreciation of factory equipment	$ 33,900
Rent on factory building (payable)	690
Factory utilities (payable)	990
Expired factory insurance	4,900
Total other factory overhead costs	$ 40,480

Prepare journal entries to record the transactions reflected in items a through g.

a.record materials purchase

b(1). record direct materials used

b(2).Record indirect materials used.

c(1). Record direct labor used.

c(2). Record indirect labor used.

d. Record overhead applied to jobs at the rate of 80% of direct materials cost.

e. Record the completion of Job 201.

f(1).Record the sale of job 201 on credit

f(2). Record the cost of job 201.

g. Record other actual factory overhead costs.

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