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Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 was completed and sold for $51,800. Job 102 was completed but not sold. Job 103 is still in process. View transaction list Job 101 $ 10,700 $ 17,200 Journal entry worksheet CD < 1,600 hours B Actual overhead costs recorded during the first month of operations totaled $12,740. Required: Note: Enter debits before credits Transaction 01 Job 102 $7,900 $ 6,600 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 2,700 hours 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Record the transfer of completed job 102 to finished goods inventory. General Journal Job 103 $ 6,000 $ 5,800 600 hours Debit Total $ 24,600 $ 29,600 4,900 hours Credit

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 was completed and sold for $51,800. Job 102 was completed but not sold. Job 103 is still in process. View transaction list Job 101 $ 10,700 $ 17,200 Journal entry worksheet CD < 1,600 hours B Actual overhead costs recorded during the first month of operations totaled $12,740. Required: Note: Enter debits before credits Transaction 01 Job 102 $7,900 $ 6,600 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 2,700 hours 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Record the transfer of completed job 102 to finished goods inventory. General Journal Job 103 $ 6,000 $ 5,800 600 hours Debit Total $ 24,600 $ 29,600 4,900 hours Credit

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 8P
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Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 was completed and sold for $51,800. Job 102 was completed but not sold. Job 103 is still in process. View transaction list Job 101 $ 10,700 $ 17,200 Journal entry worksheet CD < 1,600 hours B Actual overhead costs recorded during the first month of operations totaled $12,740. Required: Note: Enter debits before credits Transaction 01 Job 102 $7,900 $ 6,600 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 2,700 hours 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Record the transfer of completed job 102 to finished goods inventory. General Journal Job 103 $ 6,000 $ 5,800 600 hours Debit Total $ 24,600 $ 29,600 4,900 hours Credit
Transcribed Image Text:Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 was completed and sold for $51,800. Job 102 was completed but not sold. Job 103 is still in process. View transaction list Job 101 $ 10,700 $ 17,200 Journal entry worksheet CD < 1,600 hours B Actual overhead costs recorded during the first month of operations totaled $12,740. Required: Note: Enter debits before credits Transaction 01 Job 102 $7,900 $ 6,600 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 2,700 hours 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Record the transfer of completed job 102 to finished goods inventory. General Journal Job 103 $ 6,000 $ 5,800 600 hours Debit Total $ 24,600 $ 29,600 4,900 hours Credit
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