Job costing, journal entries. The University of Toronto Press is wholly owned by the university. It performs the, bulk of its work for other university departments, which pay as though the Press were an outside business enterprise. The Press also publishes and maintains a stock of books for general sale. A job costing system is used to cost each job. There are two direct cost categories (direct materials and direct manufacturing labour) and one indirect cost pool (manufacturing overhead, allocated based on direct labour costs). The following data (in thousands) pertain to 2010:

*The term manufacturing overhead is not used uniformly. Other terms that are often encountered in printing companies include job overhead and shop overhead.
REQUIRED 1. Prepare general journal entries to summarize 2010 transactions. As your final entry, dispose of the year-end overallocated or underallocated manufacturing overhead as a direct write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.
2. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.LO1

Transcribed Image Text:

Direct materials and supplies purchased on account Direct materials used Indirect materials issued to various production departments Direct manufacturing labour Indirect manufacturing labour incurred by various departments Amortization on building and manufacturing equipment Miscellaneous manufacturing overhead* incurred by various departments (ordinarily would be detailed as repairs, photocopying, utilities, etc.) Manufacturing overhead allocated at 160% of direct manufacturing labour costs Cost of goods manufactured Revenues Cost of goods sold Inventories, December 31, 2009: Materials control Work-in-process control Finished goods control $ 800 710 100 1,300 900 400 550 P 4,120 8,000 4,020 100 60 500