Job Cost Journal Entries

Prior to the beginning of 2016, Lowe Company estimated that it would incur $140,800 of manufacturing overhead cost during 2016, using 12,800 direct labor hours to produce the desired volume of goods. On January 1, 2016, beginning balances of Materials inventory, Work in Process Inventory, and Finished Goods Inventory were $22,400, $-0-, and $34,400, respectively.

Support My Subscriptions Andrea Glow Job Cost Journal Entries Prior to the beginning of 2016, Lowe Company estimated that it would incur 5140,000 of manufacturing overhead cost during 2016, using 12.000 direct labor hours to produce the desired volume of goods. On january 1, 2016, beginning balances of Materials inventory, Work in Process inventory, and Forshed Goods inventory were 522,400 and 534.400, respectively, Required Prepare general journal entries to record the following for 2016, a. Purchased materials on account, 531,200 Description Debit Credit Materials inventory 31,200 Accounts payable 21,200 b. of the total dollar value of materials used, $24.800 represented direct material and $8.00 indirect material Description De Credit Work in process wory O Manufacturing overhead OX Materials inventory 15,000 Determined total factory labor, 5108.000 (12,000 hrs. She d. or the factory labor, Box was direct and 20 indirect 800 Debit Description Work in processerter Manufag overhead Wup paytle Credit 86400 21,600 10.000 E Business Course Return to course e. Applied manufacturing overhead based on direct labor hours to work in process Support My Subccions Andrea Glow - Description Debit Credit Work in process inventory Manufacturing owerhead . f. Determined actual manufacturing overhead other than those items already recorded, 573,600. (Credit Accounts Payable) Debit Description Credit Manufacturing overhead . Ox 73.600 Accounts payable 73.600 & Ending inventories of work in process and finished goods were $25,600 and 545.600, respectively. Determine the cost of finished goods (credit WIP) and the cost of goods sold to Description Credit Fished goodwentory 25.600 Work in process inventory 25.600 Description Debit Credit Cost of goods sold OX 45,600 M Furnished goods wentary 45,600 W h. Transferred the balance in Manufacturing Overhead to cost of Goods sold Debit Credit Description Manufacturing overhead Cost of sold