Oak Creek Furniture Factory (OCFF), a custom furniture
manufacturer, uses job order costing to track the cost of each
customer order. On March 1, OCFF had two jobs in process with the
following costs:
| Work in Process |
Balance
on 3/1 |
| Job 33 |
$ |
4,300 |
| Job 34 |
|
4,700 |
|
$ |
9,000 |
|
Source documents revealed the following during March:
|
Materials Requisitions Forms |
|
Labor Time
Tickets |
Status of Job at Month-End |
| Job 33 |
|
$ |
3,800 |
|
|
$ |
4,200 |
|
Completed and sold |
| Job 34 |
|
|
3,600 |
|
|
|
3,100 |
|
Completed, but not sold |
| Job 35 |
|
|
5,000 |
|
|
|
3,700 |
|
In process |
| Indirect |
|
|
1,400 |
|
|
|
1,700 |
|
|
|
|
$ |
13,800 |
|
|
$ |
12,700 |
|
|
|
The company applies overhead to products at a rate of 65 percent
of direct labor cost.
Required:
Prepare journal entries to record the materials requisitions, labor
costs, and applied overhead. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first
account field.)
- Record the issuance of raw materials to production.
Note: Enter debits before credits.
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| Transaction |
General Journal |
Debit |
Credit |
| a |
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- Record Oak Creek Furniture Factory’s payroll costs. Assume the
direct labor is owed but not paid.
Note: Enter debits before credits.
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| Transaction |
General Journal |
Debit |
Credit |
| b |
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- Record the application of manufacturing overhead to
production.
Note: Enter debits before credits.
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| Transaction |
General Journal |
Debit |
Credit |
| c |
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