Q1. During November, these transactions took place in Singer Inc., a company that uses job order...

 

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Q1. During November, these transactions took place in Singer Inc., a company that uses job order costing: a) Materials purchased on account $35,600. b) Materials issued to fill requisitions on job orders $25,2050, Factory Supplies $1.300. c) Materials issued to complete the defective units $200 d) Freight paid for materials received, $850. e) Materials returned to vendors $225. f) Scrap materials received in the storeroom were set up at a value of $175, and credit was given to Factory Overhead Control for that amount. g) Materials returned to the storeroom: from job orders, $1,090 and factory supplies $125. h) Labour cost incurred $86,400 out of which $75,600 was for direct labour and remaining for indirect labour i) Total payroll was as follows: Recorded and then paid liability for net pay to workers, $72,054 Withheld for employees' income tax, $7,780. Withheld for hospitalization plan $950. Withheld for FICA tax $5616. j) The employer's FICA tax was recorded. State unemployment tax for Singer is 1.5% of the total gross payroll, and the federal unemployment tax rate is 0.7%. These taxes were chargeable to Factory Overhead account. k) Depreciation for the month: buildings $750; machinery $800. 1) Property tax accrued $750, insurance expired with a credit to the prepaid the prepaid account $850. m) Factory overhead is charged to production at a rate of @1.20 per direct labour hour. Records show 18,900 direct labour hours worked during the month. n) Close out the over or under applied factory overhead to cost of goods sold. o) Cost of goods completed, @122,020. p) Goods costing $108,300 were sold on account at a sales price of $159,750. Required: 1) Journal entries to record these transactions. 2) Ledger accounts for work in process. 3) What is the effect of closing the over or under applied factory overhead to Cost of goods sold Q1. During November, these transactions took place in Singer Inc., a company that uses job order costing: a) Materials purchased on account $35,600. b) Materials issued to fill requisitions on job orders $25,2050, Factory Supplies $1.300. c) Materials issued to complete the defective units $200 d) Freight paid for materials received, $850. e) Materials returned to vendors $225. f) Scrap materials received in the storeroom were set up at a value of $175, and credit was given to Factory Overhead Control for that amount. g) Materials returned to the storeroom: from job orders, $1,090 and factory supplies $125. h) Labour cost incurred $86,400 out of which $75,600 was for direct labour and remaining for indirect labour i) Total payroll was as follows: Recorded and then paid liability for net pay to workers, $72,054 Withheld for employees' income tax, $7,780. Withheld for hospitalization plan $950. Withheld for FICA tax $5616. j) The employer's FICA tax was recorded. State unemployment tax for Singer is 1.5% of the total gross payroll, and the federal unemployment tax rate is 0.7%. These taxes were chargeable to Factory Overhead account. k) Depreciation for the month: buildings $750; machinery $800. 1) Property tax accrued $750, insurance expired with a credit to the prepaid the prepaid account $850. m) Factory overhead is charged to production at a rate of @1.20 per direct labour hour. Records show 18,900 direct labour hours worked during the month. n) Close out the over or under applied factory overhead to cost of goods sold. o) Cost of goods completed, @122,020. p) Goods costing $108,300 were sold on account at a sales price of $159,750. Required: 1) Journal entries to record these transactions. 2) Ledger accounts for work in process. 3) What is the effect of closing the over or under applied factory overhead to Cost of goods sold

Answer rating: 100% (QA)

a A a Materials purchased on account Debit Accounts Payable 35600 Credit Materials 35600 b Materials issued to fill requisitions on job orders Debit Materials 25200 Credit Work in Progress 25200 Facto... View the full answer