Marinja Company uses job order costing. The following data summarize the operations related to production for May:
Question:
Marinja Company uses job order costing. The following data summarize the operations related to production for May:
Materials purchased on account, $320,0000.
Materials requisitioned, $292,100, of which $8,600 was for general factory use.
Factory labor used, $487,500 of which $33,000 was indirect.
Other costs incurred on account for factory overhead, $610,000; selling expenses, $142,000; and administrative expenses, $105,000.
Prepaid expenses expired for factory overhead were $22,000; for selling expenses, $5,000; and for administrative expenses, $4,000.
Depreciation of office building was $29,000; of office equipment, $6,500; and of factory equipment, $68,000.
Factory overhead costs applied to jobs, $712,000.
Jobs completed, $1,426,000.
Cost of goods sold, $1,378,000.
Required:
a. journal entries
b. table showing the charges for each job
c. determine the following (show computation):
1. work-in-process ending balance
2. finished goods ending balance
3. cost of goods sold
d. gross profit
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach