SOUTH DAKOTA CORPORATION uses a job-order costing system with normal costing. At the start of the...
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SOUTH DAKOTA CORPORATION uses a job-order costing system with normal costing. At the start of the period, the company had the following balances: Raw Materials inventory Work in process inventory Finished goods inventory $ 2,500 27,400 At the start of the period, only Job Alpha was in finished goods. During the month of February, the following transactions occurred: a) Purchased raw materials on account for $24,500. b) Requisitioned $23,000 of materials for use in production. Of the total, $9,000 was for Job Beta, $8,500 for Job Gamma and the remainder for Job Sigma. c) Direct labor incurred for the month was $36,000. The average wage rate is $20 per hour. Direct labor was used for jobs as follows: Job Beta 800 hours Job Gamma - 600 hours Job Sigma-400 hours d) Actual overhead incurred for the period was $17,900 (credit various payables). e) The company applied overhead to production at the rate of $10.00 per direct labor hour. f) Job Beta and Job Gamma were completed during the period and transferred to finished goods. g) Sold Job Alpha and Job Beta to their respective customers on account at cost plus 40%. REQUIRED: 1. Prepare all journal entries for items a) through g) Raw Materials 24,500 A/P 24,500 Work in progress 23,000 Raw materials 23,000 Work in progress 36,000 Wages Payable 36,000 Overhead Control 17,900 Utilities Payable 17,900 Work in progress 18,000 Overhead Control 18,000 SOUTH DAKOTA CORPORATION uses a job-order costing system with normal costing. At the start of the period, the company had the following balances: Raw Materials inventory Work in process inventory Finished goods inventory $ 2,500 27,400 At the start of the period, only Job Alpha was in finished goods. During the month of February, the following transactions occurred: a) Purchased raw materials on account for $24,500. b) Requisitioned $23,000 of materials for use in production. Of the total, $9,000 was for Job Beta, $8,500 for Job Gamma and the remainder for Job Sigma. c) Direct labor incurred for the month was $36,000. The average wage rate is $20 per hour. Direct labor was used for jobs as follows: Job Beta 800 hours Job Gamma - 600 hours Job Sigma-400 hours d) Actual overhead incurred for the period was $17,900 (credit various payables). e) The company applied overhead to production at the rate of $10.00 per direct labor hour. f) Job Beta and Job Gamma were completed during the period and transferred to finished goods. g) Sold Job Alpha and Job Beta to their respective customers on account at cost plus 40%. REQUIRED: 1. Prepare all journal entries for items a) through g) Raw Materials 24,500 A/P 24,500 Work in progress 23,000 Raw materials 23,000 Work in progress 36,000 Wages Payable 36,000 Overhead Control 17,900 Utilities Payable 17,900 Work in progress 18,000 Overhead Control 18,000
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1 Journal Entries a Raw Materials Purchased Raw Materials Inventory 24500 Accounts Payable 24500 b Materials Requisitioned for Production Work in Process Inventory Job Beta 9000 Work in Process Invent... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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