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Problem 3-43 Basic Job-Order Costing; Journal Entries (LO 3-4,3-5) (The following information applies to the questions displayed below.) Burlington Clock Works manufactures fine, handcrafted clocks.

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Problem 3-43 Basic Job-Order Costing; Journal Entries (LO 3-4,3-5) (The following information applies to the questions displayed below.) 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 employee's practical capacity. The following events occurred during October a. The firm purchased 4.000 board feet of mahogany veneer at $11 per board foot. b. Twenty brass counterweights were requisitioned for production. Each weight cost $25 c. Five gallons of glue were requisitioned for production. The glue cost $20 per gallon. Glue is treated as an indirect material d. Depreciation on the clockworks building for October was $9,000. e. A $400 utility bill was paid in cash f. Time cards showed the following usage of labor Job number G60 12 grandfather's clocks 1.000 hours of direct labor Job number 081 20 cuckoo clocks, 700 hours of direct labor The master clockmakers (direct-labor personnel) earn $18 per hour g. The October property tax bill for $910 was received but has not yet been paid in cash h. The firm employs laborers who perform various tasks such as material handling and shop cleanup. Their wages for October amounted to $2,600 1. Job number G60, which was started in July, was finished in October The total cost of the job was $14.400 J. Nine of the grandfather's clocks from job number G60 were sold in October for $1400 each Problem 3-43 Part 2 2. Prepare journal entries to record the events described above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record utility bill paid in cash $400. Note: Enter debits before credits. Transaction Debit Credit General Journal Utilities expense Accounts receivable Record entry Clear entry View general journal

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