Ch. 15 Wiley – Flashcards
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In January, Dieker Company requisitions raw materials for production as follows: Job 1 $960, Job 2 $1,400, Job 3 $760, and general factory use $620. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Work in Process Inventory 3,120 Manufacturing Overhead 620 Raw materials Inventory 3,740
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During January, time tickets show that the factory labor of $7,000 was used as follows: Job 1 $2,320, Job 2 $1,780, Job 3 $1,650, and general factory use $1,250.
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Work in process Inventory 5,750 Manufacturing Overhead 1,250 Factory Labor 7,000
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Marquis Company estimates that annual manufacturing overhead costs will be $884,000. Estimated annual operating activity bases are direct labor cost $461,000, direct labor hours 46,000, and machine hours 101,000. Compute the predetermined overhead rate for each activity base.
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Overhead rate per direct labor cost 191.75% Overhead rate per direct labor hour 19.21 Overhead rate per machine hour 8.75 divide each operating activity cost by manufacturing overhead cost
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In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $27,300 and Job 11 $34,500. On March 31, Job 10 is sold to the customer for $35,600 in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10.
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Finished goods inventory 61,800 work in process inventory 61,800 Cash 35,600 Sales Revenue 35,600 Cost of Goods Sold 27,300 Finished goods inventory 27,300
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The gross earnings of the factory workers for Larkin Company during the month of January are $91,000. The employer's payroll taxes for the factory payroll are $7,700. The fringe benefits to be paid by the employer on this payroll are $5,100. Of the total accumulated cost of factory labor, 84% is related to direct labor and 16% is attributable to indirect labor. (a) Prepare the entry to record the factory labor costs for the month of January. (b) Prepare the entry to assign factory labor to production.
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Factory Labor 103,800 Factory wages payable 91,000 employer payroll taxes 7,700 employer fringe benefit 5,100 work in process inventory 87,192 manufacturing overhead 16,608 factory labor 103,800
