Diaz Company employs a job cost system.As of January 1, 2019, its records showed the following inventory
Question:
Diaz Company employs a job cost system.As of January 1, 2019, its records showed the following inventory balances:
Materials $31,500
Work in process $56,500
Finished goods (30,000 units @ $3) $90,000
The work in process inventory consisted of two jobs:
Summarized below are the production and sales data for the company for 2019:
1.Materials purchased $95,000
2.Materials requisitioned:direct materials for Job No. 378, $16,000; for Job No. 379, $32,000; and Job No. 380, $36,000; supplies (indirect materials) requisitioned, $4,500.
3.Factory payroll distributed:direct labor to Job No. 378, $30,000; to Job No. 379, $45,000; and to Job No.380, $60,000; indirect labor, $15,000
4.Manufacturing overhead is assigned to work in process at $0.50per dollar of direct labor (the same rate as in 2018)
5.Job Nos. 378 and 379 were completed
6.Factory indirect costs (other than indirect labor and indirect materials); depreciation, $7,000; heat, light, and power, $3,000; and miscellaneous, $5,000.
7.Sales for the year amounted to $320,000; cost of goods sold, $197,000.
Required:
Use T-accounts to illustrate the journal entries for the above summarized transactions.
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Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.