Question

ENTRIES FOR FACTORY COSTS AND JOBS COMPLETED

****ONLY NEED ANSWER FOR C.******

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,000 of indirect materials and $11,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301		Job 302
Direct materials	$10,200	Direct materials	$21,000
Direct labor	8,000	Direct labor	15,400
Factory overhead	6,080	Factory overhead	11,704
Total	$24,280	Total	$48,104

Job 303		Job 304
Direct materials	$23,000	Direct materials	$14,200
Direct labor	18,000	Direct labor	12,200
Factory overhead	—	Factory overhead	—

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.

	a. Direct and indirect materials used.
	b. Direct and indirect labor used.
	c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
	d. Completion of Jobs 301 and 302.

Answer 1

Journal entry :

Date	accounts & explanation	debit	credit
	Work in process	68400
	Manufacturing overhead	7000
	Raw material		75400
	(To record direct and indirect material used)
	Work in process	53600
	Manufacturing overhead	11200
	Wages payable		64800
	(To record direct labour and indirect labour used)
	Work in process (53600*76%)	40736
	Manufacturing overhead		40736
	(To record overhead applied)
	Finished goods	72384
	Work in process		72384
	(To record job completion)