Bing Industries, Inc. uses a job order cost system. The following data summarizes the operations related to
Question:
Bing Industries, Inc. uses a job order cost system. The following data summarizes the operations related to production for June 2013, the first month of operations:
Materials purchased on account, $32,760.
Materials requisitioned and factory labor used:
Job………………….…..Materials………….Factory Labor
301……………….…….$3,290………………$3,080
302……………….…….4,025………………..4,160
303………………….….2,660………………..2,080
304………………….….9,030………………..7,640
305……………….…….5,740………………..5,810
306………….………….4,170………………..3,710
For general factory use...1,200………………..4,550
a. Factory overhead costs incurred on account, $6,300
b. Depreciation of machinery and equipment, $2,200
c. The factory overhead rate is $58 per machine hour. Machine hours used:
Job…………Machine Hours
301……………..26
302……………..38
303……………..30
304……………..80
305……………..40
306……………..26
Total……………240
d. Jobs completed: 301, 302, 303, and 305.
e. Jobs were shipped and customers were billed as follows: Job 301, $9,150; Job 302, $12,350; Job 303, $16,600.
1. Journalize the entries to record the summarized operations.
Managerial Accounting
ISBN: 978-0077826482
3rd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips