Question

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, $7,900 of indirect materials and $13,200 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	$10,900	Direct Materials	$18,300
Direct Labor	$8,900	Direct Labor	$17,700
Factory Overhead	$5,785	Factory Overhead	$11,505
Total	$25,585	Total	$47,505

Job 303		Job 304
Direct Materials	$26,000	Direct Materials	$13,700
Direct Labor	$16,000	Direct Labor	$12,300
Factory Overhead	------------	Factory Overhead	------------

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. Record direct materials costs in the work in process account, and indirect materials costs in the factory overhead account.

b. Record direct labor costs in the work in process account, and indirect labor costs in the factory overhead account.

c. Apply factory overhead based on direct labor costs.

d. When a job is completed, it is transferred out of work-in-process and into finished goods

Answer 1