Question

On May 15, the stamping department accepted Job 051507A to make 1,000 funnels. Materials requisitioned were 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The cost driver used by stamping department is the drop-forge strokes indicated by a machine mounted counter. Overhead is applied at $2.25 for each drop-forge stroke. Additionally, $375.00 of overhead is applied to each job due to setup and tear down. Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6.5 hours of labor. Upon completion, the job was transferred to Finish Goods Inventory.

Required:

Journalize all events as of May 15

Answer 1

15-May	Work in Process	1492.5		=(1100*1.2)+(1150*0.15)
	Raw Materials		1492.5
15-May	Work in Process	2883.75		=375+(1115*2.25)
	Factory Overhead		2883.75
15-May	Work in Process	218.4		=6.5*(22.5+11.1)
	Wages Payable		218.4
15-May	Finished Goods Inventory	4594.65
	Work in Process		4594.65