Purchased materials, P30,000. 5 Requisitioned materials from inventory, P20,000 (75% of these were direct; 25% were indirect). Direct materials of P3,000 and indirect materials of P1,000 were for Job 00‑1. The remainders were for Job 00‑2. 7 For Job 00‑2, returned P150 of direct materials and P200 of indirect materials. 8 Recorded liabilities for payroll: direct labor, P15,000 and indirect labor, P5,000. Of the direct labor cost, 60% was for Job 00‑1; the remainder was for Job 00‑2. 10 Incurred other factory overhead costs, P20,000 (all applicable to Jobs 00‑1 and 00‑2). 14 Applied overhead at the rate of 200% of direct labor cost to Jobs 00‑1 and 00‑2, which were completed and transferred to finished goods account today. Required: Assuming that Jobs 00‑1 and 00‑2 were the only jobs durin
During June, the following transactions took place at the Inoue Corp.
June 3 Purchased materials, P30,000.
5 Requisitioned materials from inventory, P20,000 (75% of these were direct; 25% were indirect). Direct materials of P3,000 and indirect materials of P1,000 were for Job 00‑1. The remainders were for Job 00‑2.
7 For Job 00‑2, returned P150 of direct materials and P200 of indirect materials.
8 Recorded liabilities for payroll: direct labor, P15,000 and indirect labor, P5,000. Of the direct labor cost, 60% was for Job 00‑1; the remainder was for Job 00‑2.
10 Incurred other
14 Applied overhead at the rate of 200% of direct labor
Required: Assuming that Jobs 00‑1 and 00‑2 were the only jobs during the period and that all overhead (as recorded above) is the total applicable overhead for these projects:
Journal entries to record above transactions- Prepare a job order cost sheet for each job.
- Determine the difference between applied and actual overhead for the month
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
