Journal entries; assigning costs to jobs; cost accumulation lalani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $465,360 Work in Process Inventory 2,117,640| Cost of Goods Sold 6,809,600 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $820,960 Job #78 373,240 Job #82 923,440| The following transactions occurred during September: 09-01 Purchased $2,716,000 of raw material on account. 09-04 Issued $2,660,000 of raw material as follows: Job #75, $405,440; Job #78 $353,640; Job #82, $1,389,080 ; Job #86, $437,360 ; and indirect material, $74,480 09-15 Prepared and paid the $1,059,800 factory payroll for September 1-15. Analysis of this payroll showed the following information: Hours Dollars Job #75 13,524 $118,440 Job #78 36,848 374,080 Job #82 28,420 284,200 Job #86 14,392 155,120 Indirect labor wages 127,960 09-15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $55,440 ; rent, $98,840 ; and accounts payable (accrued in August), $275,520. 09-24 Purchased raw material on account, $873,600. 09-25 Issued $1,002,960 of direct material as follows: Job #78, $216,720 ; Job #82, $297,640; Job #86, $488,600 ; indirect material issued was $78,120. 09-30 Recorded additional factory overhead costs as follows: depreciation, $1,132,600; expired prepaid insurance, $231,560 ; and accrued taxes and licenses, $325,360. 09-30 Recorded and paid the factory payroll for September 16-30 of $1,000,160. Analysis of the payroll follows: Hours Dollars Job #78 12,516 $248,360 Job #82 19,110 319,760 Job #86 13,972 341,040 Indirect labor wages 91,000 09-30 Applied overhead for the second half of the month to jobs.

Journal entries; assigning costs to jobs; cost accumulation lalani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $465,360 Work in Process Inventory 2,117,640| Cost of Goods Sold 6,809,600 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $820,960 Job #78 373,240 Job #82 923,440| The following transactions occurred during September: 09-01 Purchased $2,716,000 of raw material on account. 09-04 Issued $2,660,000 of raw material as follows: Job #75, $405,440; Job #78 $353,640; Job #82, $1,389,080 ; Job #86, $437,360 ; and indirect material, $74,480 09-15 Prepared and paid the $1,059,800 factory payroll for September 1-15. Analysis of this payroll showed the following information: Hours Dollars Job #75 13,524 $118,440 Job #78 36,848 374,080 Job #82 28,420 284,200 Job #86 14,392 155,120 Indirect labor wages 127,960 09-15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $55,440 ; rent, $98,840 ; and accounts payable (accrued in August), $275,520. 09-24 Purchased raw material on account, $873,600. 09-25 Issued $1,002,960 of direct material as follows: Job #78, $216,720 ; Job #82, $297,640; Job #86, $488,600 ; indirect material issued was $78,120. 09-30 Recorded additional factory overhead costs as follows: depreciation, $1,132,600; expired prepaid insurance, $231,560 ; and accrued taxes and licenses, $325,360. 09-30 Recorded and paid the factory payroll for September 16-30 of $1,000,160. Analysis of the payroll follows: Hours Dollars Job #78 12,516 $248,360 Job #82 19,110 319,760 Job #86 13,972 341,040 Indirect labor wages 91,000 09-30 Applied overhead for the second half of the month to jobs.

Journal entries; assigning costs to jobs; cost accumulation lalani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $465,360 Work in Process Inventory 2,117,640| Cost of Goods Sold 6,809,600 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $820,960 Job #78 373,240 Job #82 923,440| The following transactions occurred during September: 09-01 Purchased $2,716,000 of raw material on account. 09-04 Issued $2,660,000 of raw material as follows: Job #75, $405,440; Job #78 $353,640; Job #82, $1,389,080 ; Job #86, $437,360 ; and indirect material, $74,480 09-15 Prepared and paid the $1,059,800 factory payroll for September 1-15. Analysis of this payroll showed the following information: Hours Dollars Job #75 13,524 $118,440 Job #78 36,848 374,080 Job #82 28,420 284,200 Job #86 14,392 155,120 Indirect labor wages 127,960 09-15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $55,440 ; rent, $98,840 ; and accounts payable (accrued in August), $275,520. 09-24 Purchased raw material on account, $873,600. 09-25 Issued $1,002,960 of direct material as follows: Job #78, $216,720 ; Job #82, $297,640; Job #86, $488,600 ; indirect material issued was $78,120. 09-30 Recorded additional factory overhead costs as follows: depreciation, $1,132,600; expired prepaid insurance, $231,560 ; and accrued taxes and licenses, $325,360. 09-30 Recorded and paid the factory payroll for September 16-30 of $1,000,160. Analysis of the payroll follows: Hours Dollars Job #78 12,516 $248,360 Job #82 19,110 319,760 Job #86 13,972 341,040 Indirect labor wages 91,000 09-30 Applied overhead for the second half of the month to jobs.

College Accounting, Chapters 1-27

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 6SEA: JOURNAL ENTRIES FOR MATERIAL, LABOR, OVERHEAD, AND SALES Micro Enterprises had the following job...

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Journal entries; assigning costs to jobs; cost accumulation
lalani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances:
Raw Material Inventory
$465,360
Work in Process Inventory 2,117,640
Cost of Goods Sold
6,809,600
On September 1, the three jobs in Work in Process Inventory had the following balances:
Job #75 $820,960
Job #78
373,240
Job #82
923,440
The following transactions occurred during September:
09-01 Purchased $2,716,000 of raw material on account.
09-04 Issued $2,660,000 of raw material as follows: Job #75, $405,440; Job #78 $353,640; Job #82, $1,389,080; Job #86, $437,360 ; and indirect material, $74,480
09-15 Prepared and paid the $1,059,800 factory payroll for September 1-15. Analysis of this payroll showed the following information:
Hours
Dollars
Job #75
13,524 $118,440
Job #78
36,848
374,080
Job #82
28,420 284,200
Job #86
14,392
155,120
Indirect labor wages
127,960
09-15 On each payroll date, lalani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour.
09-15 Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar.
09-20 Paid the following monthly factory bills: utilities, $55,440 ; rent, $98,840 ; and accounts payable (accrued in August), $275,520.
09-24 Purchased raw material on account, $873,600.
09-25 Issued $1,002,960 of direct material as follows: Job #78, $216,720 ; Job #82, $297,640; Job #86, $488,600 ; indirect material issued was $78,120.
09-30 Recorded additional factory overhead costs as follows: depreciation, $1,132,600; expired prepaid insurance, $231,560; and accrued taxes and licenses, $325,360.
09-30 Recorded and paid the factory payroll for September 16-30 of $1,000,160. Analysis of the payroll follows:
Hours
Dollars
Job #78
12,516 $248,360
Job #82
19,110 319,760
Job #86
13,972 341,040
Indirect labor wages
91,000
09-30 Applied overhead for the second half of the month
jobs.

a. Journalize the September transactions.
Note: Record any multiple debits or any multiple credits in alphabetical order by account name.
Account
Debit
Credit
09-01
To record raw materials purchased on account
09-04
To record the direct materials issued
09-15
To record labor costs
09-15
To record applied overhead
09-15
To record completed jobs
09-15
To record sales
09-15
To record the cost of sales
09-20
To record miscellaneous payments
09-24
To record purchase of raw materials
09-25
To record the direct materials issued
09-30
To record additional factory overhead
09-30
To record labor costs
09-30
To record applied overhead
b. Use T-accounts to post the information from the journal entries in (a) to the job cost subsidiary accounts and to general ledger accounts.

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