B

Ch$15$ Case Study Assignment $-$ Part $2$

Job Order Cost Journal Entry Problem $(2$pts$)$

Prepare journal entries in proper format for Starwood Company.

a$.$

$\backslash$table$[[$Account Name,Debit,Credit$],[,,]]$

Starwood Company purchases $$650,000$ in materials on account.

b$.$

$\backslash$table$[[$Account Name,Debit,Credit$],[,,]]$

Starwood Company incurs $$275,000$ in factory labor costs paid in cash.

c$.$

$\backslash$table$[[$Account Name,Debit,Credit$],[,,],[,,],[,,]]$

Starwood Company's manufacturing overhead consisted of depreciation on equipment for $$275,000$ and miscellaneous costs of $$135,000$ incurred on account

d$.$

$\backslash$table$[[$Account Name,Debit,Credit$],[,,],[,,]]$

Starwood Company assigns materials to production: $$245,000$ for Job $101,$ $$190,000$ for Job $102,$ and $$105,000$ for general use.

e$.$

$\backslash$table$[[$Account Name,Debit,Credit$],[,,],[,,]]$

Starwood Company assigns labor to production : $$135,000$ for Job $101,$ $$95,000$ for Job $102,$ and $$45,000$ for general use

f$.$

$\backslash$table$[[$Account Name,Debit,Credit$],[,,]]$

Compute applied manufacturing overhead as $200\%$ of direct labor costs. Record entry for applied manufacturing overhead.

$2.$ Complete the Job Cost Worksheets for Job $101$ and Job $102$:

$\backslash$table$[[$Job $101-$ Job Cost Worksheet$],[$Job $101,$Product Costs$],[$DM$,],[$DL$,],[$Applied MOH,$],[$Total$,]]$

$\backslash$table$[[$Job $102,$Product Cost$],[$DM$,],[$DL$,],[$Applied MOH,$],[$Total$,]]$

$*$Tip: Enter the product costs for Job $101$ and Job $102$ from the d$.$ entry $($DM$),$ e$,$ entry $($DL$),$ and f$.$ entry $($applied MOH$).$