Question

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	$	5,900
Job 34		4,000
	$	9,900

Source documents revealed the following during March:

	Materials Requisitions Forms					Labor Time Tickets			Status of Job at Month-End
Job 33		$	3,900			$	5,000		Completed and sold
Job 34			2,700				4,900		Completed, but not sold
Job 35			4,800				3,400		In process
Indirect			600				2,000
		$	12,000			$	15,300

The company applies overhead to products at a rate of 55 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.)

Answer 1

No	Account titles & Explanations					Debit	Credit
1)	Work in process inventory					11400
	manufacturing overhead					600
	Raw materials inventory						12000
2)	Work in process inventory					13300
	manufacturing overhead					2000
	Factory labor						15300
3)	Work in process inventory					7315
	manufacturing overhead						7,315