$1$

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$.65.$