Weaver Company uses a job order cost accounting system. They had the following amounts in inventory on January 1: Material Work in Process: Finished
Weaver Company uses a job order cost accounting system. They had the following amounts in inventory on January 1: Material Work in Process: Finished Goods $14,000 23,000 5,000 Prepare the journal entries for the following chronological events which took place in January: a. Sold products which cost $4,000 for $9,400 on account. b. Paid sales commission of $188. C. Paid and used $2,000 of rent on the building (just for the month of January). The factory occupies 70% of the total building space. d. Used $4,000 of direct material e. Paid $9,000 of direct labor f. Allocated factory overhead costs to products as 60% of direct labor costs. g. Completed jobs which cost $24,200 h. Paid wages of $500 to the office secretary and $400 to factory maintenance worker. i. Used $80 of indirect material. j. Purchased and paid for $2,400 of direct materials. k. Paid $1,000 for advertising. 1. Recorded depreciation for the month as follows: Factory equipment $3,000 Office equipment 600 m. Based upon your journal entries above, prepare a schedule of cost of goods manufactured for January. Any overallocated or underallocated overhead will be shown as an adjustment to cost of goods SOLD at the end of the YEAR
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