Question
I need help with f, g and j journal entries to record the events Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a
I need help with f, g and j journal entries to record the events
Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is $240,000. The firm employs 10 master clockmakers, who constitute the direct-labor force. Each of these employees is expected to work 2,000 hours during the year, which represents each employees practical capacity. The following events occurred during October.
- The firm purchased 3,000 board feet of mahogany veneer at $11 per board foot.
- Twenty brass counterweights were requisitioned for production. Each weight cost $23.
- Five gallons of glue were requisitioned for production. The glue cost $20 per gallon. Glue is treated as an indirect material.
- Depreciation on the clockworks building for October was $8,000.
- A $400 utility bill was paid in cash.
- Time cards showed the following usage of labor: Job number G60: 12 grandfather clocks, 1,000 hours of direct labor Job number C81: 20 cuckoo clocks, 700 hours of direct labor The master clockmakers (direct-labor personnel) earn $20 per hour.
- The October property tax bill for $910 was received but has not yet been paid in cash.
- The firm employs laborers who perform various tasks such as material handling and shop cleanup. Their wages for October amounted to $2,500.
- Job number G60, which was started in July, was finished in October. The total cost of the job was $14,400.
- Nine of the grandfather clocks from job number G60 were sold in October for $1,500 each.
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