Exercise 5.19

Journal Entries, T-Accounts

Kapoor Company uses job-order costing. During January, the following data were reported:

Materials purchased on account: direct materials, $98,500; indirect materials, $14,800.

Materials issued: direct materials, $82,500; indirect materials, $8,800.

Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.

Other manufacturing costs incurred (all payables), $46,200.

Overhead is applied on the basis of 110 percent of direct labor cost.

Work finished and transferred to Finished Goods Inventory cost $230,000.

(1) Finished goods costing $215,000 were (2) sold on account for 140 percent of cost. Make the entry to record the cost of the jobs first, followed by the entry to record the revenue from their sale.

Any over- or underapplied overhead is closed to Cost of Goods Sold.

Required:

2. Prepare a T-account for Overhead Control. Post the entries to the T-account in the same order in which they were journalized. If an amount is zero, enter "0". What is the ending balance in this account?

Overhead Control
- Select your answer -abcdefghCorrect 1 of Item 2		- Select your answer -abcdefghCorrect 3 of Item 2
- Select your answer -abcdefghCorrect 5 of Item 2
- Select your answer -abcdefghCorrect 7 of Item 2
Balance		- Select your answer -abcdefghCorrect 10 of Item 2
		Balance

3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10,000, and post the entries to the T-account in the same order in which they were journalized.

Work in Process Inventory
- Select your answer -abcdefghBeginning BalanceCorrect 1 of Item 3		- Select your answer -abcdefghBeginning BalanceCorrect 3 of Item 3
- Select your answer -abcdefghBeginning BalanceCorrect 5 of Item 3
- Select your answer -abcdefghBeginning BalanceCorrect 7 of Item 3
- Select your answer -abcdefghBeginning BalanceCorrect 9 of Item 3
Balance