chapter 2job order costing
Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a).
Crane Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 20,800, direct labor $ 12,480, and manufacturing overhead $ 16,640. As of January 1, Job 49 had been completed at a cost of $ 93,600 and was part of finished goods inventory. There was a $ 15,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Crane Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $ 126,880 and $ 164,320, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $ 93,600 on account. 2. Incurred factory labor costs of $ 72,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $ 12,480; and various other manufacturing overhead costs on account $ 16,640. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $ 10,400 $5,200 51 40,560 26,000 52 31,200 20,800 5. Assigned indirect materials of $ 17,680 and indirect labor of $ 20,800. (a) Your answer is correct. Calculate the predetermined overhead rate for 2022, assuming Crane Company estimates total manufacturing overhead costs of $ 873,600, direct labor costs of $ 728,000, and direct labor hours of 20,800 for the year. Predetermined overhead rate 120 % e Textbook and Media List of Accounts Attempts: 2 of 5 used Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory 93600 Accounts Payable 93600 (2) Factory Labor 72800 Payroll Liabilities 72800 (3) Manufacturing Overhead 29120 Accumulated Depreciation-Equipment 12480 Accounts Payable 16640 Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory Manufacturing Overhead Accounts Payable (2) Manufacturing Overhead (3) Work in Process Inventory Manufacturing Overhead
