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Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:
Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:
1. | Direct materials requisitioned during the month: | ||||||
Job 101 | $20,000 | ||||||
Job 102 | 16,000 | ||||||
Job 103 | 24,000 | ||||||
$60,000 |
2. | Direct labor incurred and charged to jobs during the month was: | |||||||
Job 101 | $32,000 | |||||||
Job 102 | 28,000 | |||||||
Job 103 | 20,000 | |||||||
$80,000 |
3. | Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labor costs. | ||
4. | Actual manufacturing overhead costs incurred and paid during the month amounted to $66,000. | ||
5. | Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month. |
(a)
Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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