Question
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
Inventories | Beginning of period | End of Period |
---|---|---|
Raw materials | $ 34,000 | $ 59,000 |
Work in process | 9,600 | 19,800 |
Finished goods | 68,000 | 34,200 |
Cost incurred for the period | |
Raw materials purchases | $ 189,000 |
---|---|
Factory payroll | 100,000 |
Factory overhead (actual) | |
Indirect materials used | 16,000 |
Indirect labor used | 23,000 |
Other overhead costs | 115,500 |
1. Direct labor used (recorded as factory wages payable). 2. Indirect labor used (recorded as factory wages payable). Prepare journal entries for the above transactions for the period.
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
Inventories | Beginning of period | End of Period |
---|---|---|
Raw materials | $ 34,000 | $ 59,000 |
Work in process | 9,600 | 19,800 |
Finished goods | 68,000 | 34,200 |
Cost incurred for the period | |
Raw materials purchases | $ 189,000 |
---|---|
Factory payroll | 100,000 |
Factory overhead (actual) | |
Indirect materials used | 16,000 |
Indirect labor used | 23,000 |
Other overhead costs | 115,500 |
1. Incurred other actual overhead costs (all paid in Cash). 2. Applied overhead to work in process. Prepare journal entries for the above transactions for the period.
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