Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during Marchjob P and
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during Marchjob P and job Q. Job P, consisting of 27,200 units, was completed and sold by the end of the March but job Q was still incomplete. The company uses a plantwide predetermined overhead rate based on direct labour-hours. The following additional information is available for the company as a whole and for jobs P and Q (all data and questions relate to the month of March):
Estimated total fixed manufacturing overhead$14,400Estimated variable manufacturing overhead per direct labour-hour$1.50Estimated total direct labour-hours to be worked 3,600Total actual manufacturing overhead costs incurred$19,500
Job PJob QDirect materials$15,000$9,600Direct labour cost$40,500$12,000Actual direct labour-hours worked 2,700 800
Required:
Assume the ending raw materials inventory is $2,600 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started