Job cost sheets for incomplete jobs in Work in Process on February 1 showed the following: Job
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Question:
Job cost sheets for incomplete jobs in Work in Process on February showed the following:
Job # Job #
Direct materials $ $
Direct labor
Manufacturing overhead
Total $ $
There was one completed job in Finished Goods on Feb. Job # for $
Prepare the journal entries for the following transactions: Hint: Use job cost sheets to track
costs of jobs.
a During the month, $ of raw materials were purchased on account.
b Job # was started during the month. Materials requisitions showed the following
direct and indirect materials used in production during the month:
Job Numbers General
# # # Use Total
Materials $ $ $ $ $
c Labor time tickets showed the following direct and indirect labor costs incurred during
the month:
Job Numbers General
# # # Use Total
Labor $ $ $ $ $
d Bills were received for other costs incurred: $ utilities factory, sales and
$ depreciation on factory equipment.
e Manufacturing overhead is allocated to production at a predetermined OH rate of
of direct labor costs.
f Job # and # were completed and transferred out of production during the month.
Hint: Use job cost sheets to calculate the total cost of the jobs. Remember to include
BWIP and MOH allocated.
g Jobs # and # were sold on account for $Hint: Prepare two journal entries,
one for the sales revenue and one for the cost of goods sold.
h Calculate the amount of under or overallocated manufacturing overhead and prepare
the journal entry to dispose of it directly to Cost of Goods Sold.
i What is the ending balance in Work in Process at the end of the month? Hint: There are
two ways you could find this. One way is to post all the transactions to a WIP tacc
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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