Question
on January 4th sold two ice cream systems to Day Dreamer's Ice Cream. THe estimated direct labor is $8,000.00. The estimated direct material is $2,250.00.
on January 4th sold two ice cream systems to Day Dreamer's Ice Cream. THe estimated direct labor is $8,000.00. The estimated direct material is $2,250.00. The estimated indirect material is $350.00. Day Dreamers is to be billed in the amount of $20,925.00 on account. A check for $5,000.00 will be collected as a deposit against that sale. The start date will bew January 7th. The date Promised will be January 23rd.
The company uses the job order cost system. Markups to determine the selling price of a job for the company are 150% of estemated job costs. All sales are exempt from sales tax, as the company sells locally to resellers.
On January 19th the job was finished.. Direct materials was $2,800.00, indirect materials was $$325.00. Apply from time cards $7,950.00 of direct labor. Applied factory overhead is based on 25% of direct labor cost. Tranfer the completed job to COGS account afrom Direct Material and Indirect Material and for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay foing to salaries payable. FWT Payable is 15% and FICA tax payable its 7.65%.
Please do all of the journal entries needed to show on the books.
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