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1 Required Information [ The following information applies to the questions displayed below. ] Stellar Sound, Inc., which uses a job - order costing system,

1
Required Information
[The following information applies to the questions displayed below.]
Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 201 : job no.64($84,100)
and job no.65($53,500). The following information is available:
a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted
overhead and machine activity for the year were anticipated to be $808,000, and 16,000 hours, respectively.
b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine
hours consumed were as follows:
c. Manufacturing overhead during the first quarter included charges for depreciation ($33,300), indirect labor ($60,100).
indirect materials used ($5,100), and other factory costs ($139,600).
d. Stellar Sound completed job no.64 and job no.65. Job no.65 was sold on account, producing a profit of $34,700 for
the firm.
Prepare journal entries as of March 31 to record the following. (Note: Use summary entries where appropriate by combining
individual job data.)(If no entry is requlred for o tronsoctlon/event, select "No journol entry required" In the first account fleld. Do
not round Intermedlate calculatlons.)
a. The issuance of direct material to production and the direct labor incurred.
b. The manufacturing overhead incurred during the quarter.
c. The application of manufacturing overhead to production.
d. The completion of jobs no.64 and no.65.
e. The sale of job no.65.
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