Weygandt, Accounting Principles, 13e | CALCULATOR | STANDARD VIEW | PRINTER VERSION . BACK NEXT Problem 20-01A a, c, di, b, d2,-h (Video) Ivanhoe 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 $20,800, direct labor $12,480, and manufacturing overhead $16,640. As of January 1, Job 49 had been completed at a cost of $93,600 and was part of finished goods inventory. There was a $15,600 balance in the Raw Materials Inventory account. During the month of January, Ivanhoe 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 $126,880 and $164,320, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $93,600 on account. 2. Incurred factory labor costs of $72,800. of this amount $16,640 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $17,680; Indirect labor $20,800; deprecation expense on equipment $12,480; and various other manufecturing overhead costs on account $16,640. Assigned direct materials and direct labor to jobs as follows. 4. Job No Direct Materials Direct Labor 50 51 52 $10,400 40,560 31,200 $5,200 26,000 20,800 Calculate the predetermined overhead rate for 2020, assuming Ivanhoe Company estimates total manufacturing overhead costs of $873,600, direct labor costs of $728,000, and direct labor hours of 20,800 for the year Predetermined overhead rate Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor coststicurred, and (3) the manufacturing overhead costs incurred during the month of January. (Credlt account titles are automatically Indented when amount Is entered. Do not Indent manualy.) Deblt Credit No. Account Titles and Explanation CALCULATOR STANDARD VIEW RNTER VERSIONI-nek mmarg tia foumal entries o record the assignment of (6y direct materials, () diredt labot and (8) manufacturing overhead costs t production. In assigning manufacturing ove duction. in assigning manufacturing overhead costs, use the overhead rate calculated in (o). (Credit account irtes are automatically Indented when amount is entered. Do not Indent manually.) Deblt Credlt No. Account Titles and Explanation 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. ob No. 50 Date Beg. Jan. DIrect Materials Direct Labor Manufacturing Overhead Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Date Direct Materlals Direct Labor Manufacturing overhead Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost ob No. 52 Date Direct Materials Direct Labor Manufacturine Q0 ob No. 52 Date Direct Materials Jan. $ Direct Labor Manufacturing Overhead Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit Credit neunthe ybre s ot Incent the nale of any job(s) during the month. (Credit account titles arne automatically indented when No. Account Titles and Explanation Deblt Credit To record sale of jobs) (To record cost of jobs) of? What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist Finished Goods Inventory What is the amount of over- or underapplied overhead? Manufacturing Overhead
