View Policies Show Attempt History Current Attempt in Progress Waterway Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $25,000, direct labor $15,000, and manufacturing overhead $20,000. As of January 1, Job 49 had been completed at a cost of $112,500 and was part of finished goods inventory. There was a $18,750 balance in the Raw Materials Inventory account. During the month of January, Waterway Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $152,500 and $197,500, respectively. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $112,500 on account. Incurred factory labor costs of $87,500. Of this amount $20,000 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $21,250; indirect labor $25,000; depreciation expense on equipment $15,000; and various other manufacturing overhead costs on account $20,000. Assigned direct materials and direct labor to jobs as follows. 4. Job No. Direct Labor 50 Direct Materials $12,500 48,750 37,500 51 $6,250 31,250 25,000 52 and direct labor hours of 25,000 for the year. Predetermined overhead rate 120 % e Textbook and Media List of Accounts Attempts: 1 of 3 used (c) Your Answer Correct Answer Your answer is partially correct. Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit (1) Raw Materials Inventory 112500 Accounts Payable (2) Factory Labor 107,500 Factory Wages Payable Accumulated Depreciation-Equipment Raw Materials Inventory Factory Labor e Textbook and Media List of Accounts Attempts: 3 of 3 used (d1) Your answer is correct. Prepare the journal entries to record the assignment of (1) direct materials, (2) direct labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit (1) Work in Process Inventory 98750 Raw Materials Inventory (2) Work in Process Inventory 62500 Factory Labor (3) Work in Process Inventory 75000 (b) & (d2) Your answer is correct. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary. Job No. 50 Date Direct Materials Direct Labor Manu Beg. $ 25,000 $ 15,000 $ Jan. 12,500 6,250 37,500 $ 21,250 $ Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost $ 48,750 $ 31,250 $ Cost of completed job Direct materials $ Direct labor Manufacturing overhead Total cost $ Job No. 52 Date Direct Materials Direct Labor Manufacturing C Jan. $ 37,500 $ 25,000 $ e Textbook and Media List of Accounts Attempts: 2 of 3 used e Textbook and Media List of Accounts Save for Later Attempts: 2 of 3 used Submit Answer (f) The parts of this question must be completed in order. This part will be available when you complete the part above. (g) The parts of this question must be completed in order. This part will be available when you complete the part above. (h) The parts of this question must be completed in order. This part will be available when you complete the part above
