JOB ORDER COSTING TRANSACTIONS B & L Enterprises makes garage doors. During the month of February, the company had four
JOB ORDER COSTING TRANSACTIONS B & L Enterprises makes garage doors. During the month of February, the company had four job orders: 303, 304, 305, and 306. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed.
(a) Purchased raw materials on account, $40,000.
(b) Issued direct materials to production:
Job No. 303: $8,000
Job No. 304: 9,000
Job No. 305: 7,000
Job No. 306: 8,500
(c) Issued indirect materials to production, $5,000.
(d) Incurred direct labor costs:
Job No. 303: $5,000
Job No. 304: 4,000
Job No. 305: 4,800
Job No. 306: 5,200
(e) Charged indirect labor to production, $3,100.
(f) Paid electricity, heating oil, and repair bills for the factory and charged to production, $4,900.
(g) Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows:
Job No. 303: $3,000
Job No. 304: 3,500
Job No. 305: 3,000
Job No. 306: 3,500
(h) Finished Job Nos. 303–306 and transferred to the finished goods inventory account as products J, K, L, and M.
(i) Sold products J, K, L, and M for $19,000, $18,500, $16,000, and $18,300, respectively.
1. Prepare general journal entries to record transactions (a) through (i).
2. Post the entries to the work in process and finished goods T accounts only.
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