Preparing journal vouchers and posting; prorating service department costs. The management of Wood Systems, Inc., producers of
Question:
Preparing journal vouchers and posting; prorating service department costs. The management of Wood Systems, Inc., producers of wooden desks, has decided that the process cost accounting system is best for its purposes.
During August 19X4, the following data appear in the firm’s records. Page 8 of the voucher register shows a debit of $16,471.54 to Raw Materials 121 and a debit of
$1,770.60 to Manufacturing Overhead Control 501. Page 8 of the materials requisition journal shows issues of raw materials as follows:
Distribution Amount Shaping Department $ 6,200 Painting Department 4,750 Finishing Department 906 Manufacturing Overhead Control 1,620 Raw Materials 13,476 The weekly payroll register shows labor costs as follows:
The monthly payroll register shows salaries of $3,895. The monthly summary of labor costs shows the distribution of the charges as follows:
The schedule of monthly fixed overhead charges contains the following figures:
Instructions 1. Post the debit entries from the voucher register to the appropriate general ledger accounts.
2. Post the distribution of raw materials from the materials requisition journal to the appropriate general ledger accounts.
3. Post the debit entries for each week from the weekly payroll register to the appropriate general ledger account.
4. Post the debit entry from the monthly payroll register to the appropriate general ledger account.
5. Prepare the general journal voucher to charge labor costs to production. Number the voucher 8-11. Post to the general ledger accounts.
6. Post the debit entries from the schedule of monthly fixed overhead charges to the appropriate general ledger account.
7. Complete the worksheet for prorating the costs of the General Factory Depart- ment to the producing departments. Prorate on the basis of 34 percent to Shap- ing, 25 percent to Painting, and 41 percent to Finishing. The departmental totals are as follows:
8. Prepare the general journal voucher to apportion manufacturing overhead to the producing departments. Number the voucher 8-12. Post to the general ledger accounts.
Step by Step Answer:
Cost Accounting Principles And Applications
ISBN: 9780070081529
5th Edition
Authors: Horace R. Brock