The August 2025 transactions of Jackson Productions Ltd, which uses a job order costing system, are shown
Question:
The August 2025 transactions of Jackson Productions Ltd, which uses a job order costing system, are shown below. (Ignore GST.)
1. Raw materials purchased, $171 000.
2. Raw materials issued to production, $160 000 direct and $21 000 indirect.
3. Factory payroll included $249 000 of direct labour and $48 000 of indirect labour.
4. Other overhead costs incurred were:
5. Depreciation of manufacturing equipment, $28 500.
6. Factory overhead is applied at 80% of direct labour cost.
7. Jobs completed and transferred to finished goods at cost, $585 000.
8. Jobs with a cost of $550 000 were sold for $687 500 cash.
9. Beginning inventories were:
Required
(a) Prepare the general journal entries to record the transactions.
(b) Calculate the ending balances in work in process, raw materials and finished goods.
(c) Was overhead underapplied or overapplied in August? By what amount?
Step by Step Answer:
Accounting
ISBN: 9780730382737
11th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie