Instructions:

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,900 of indirect materials and $13,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301

Job 302

Direct materials

$10,900

Direct materials

$18,300

Direct labor

8,900

Direct labor

17,700

Factory overhead

5,785

Factory overhead

11,505

Total

$25,585

Total

$47,505

Job 303

Job 304

Direct materials

$26,000

Direct materials

$13,700

Direct labor

16,000

Direct labor

12,300

Factory overhead

Factory overhead

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.

a. Direct and indirect materials used.

b. Direct and indirect labor used.

c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).

d. Completion of Jobs 301 and 302.

CHART OF ACCOUNTSOld School Publishing Inc.General Ledger

ASSETS

110

Cash

121

Accounts Receivable

125

Notes Receivable

126

Interest Receivable

131

Materials

132

Work in Process

133

Factory Overhead

134

Finished Goods

141

Supplies

142

Prepaid Insurance

143

Prepaid Expenses

181

Land

191

Factory

192

Accumulated Depreciation-Factory

LIABILITIES

210

Accounts Payable

221

Utilities Payable

231

Notes Payable

236

Interest Payable

241

Lease Payable

251

Wages Payable

252

Consultant Fees Payable

EQUITY

311

Common Stock

340

Retained Earnings

351

Dividends

390

Income Summary

REVENUE

410

Sales

610

Interest Revenue

EXPENSES

510

Cost of Goods Sold

520

Wages Expense

531

Selling Expenses

532

Insurance Expense

533

Utilities Expense

534

Office Supplies Expense

540

Administrative Expenses

560

Depreciation Expense-Factory

590

Miscellaneous Expense

710

Interest Expense

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.

a. Direct and indirect materials used.

b. Direct and indirect labor used.

c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).

d. Completion of Jobs 301 and 302.

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JOURNAL

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

1

2

3

4

5

6

7

8

9

10