Recording Direct Labor and Factory Overhead

Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a job order cost system. The time tickets from May jobs are summarized below.

Job 5-100	$8,960
Job 5-101	5,460
Job 5-102	6,720
Job 5-103	4,060
Factory supervision	2,450

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $35 per hour.

a. Determine the total factory labor costs transferred to Work in Process and Factory Overhead for May. If required, round your answers to nearest dollar.

Factory labor costs transferred to Work in Process	$ _________________
Factory labor costs transferred to Factory Overhead	$ _________________

b. Determine the amount of factory overhead applied to production for May. If required, round your answer to nearest dollar. $ _________________

c. Illustrate the effects of the factory overhead applied in (b) on the accounts and financial statements.

If no account or activity is affected, select "No effect" from the drop-down list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet								Income Statement
	Assets			=	Liabilities	+	Stockholders' Equity
	_________________	+	_________________	=	_________________	+		_________________
	_________________		_________________		_________________			_________________
Statement of Cash Flows								Income Statement
_________________	_________________							_________________