Question

Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:

Job 201 $3,620

Job 202 1,810

Job 203 1,430

Job 204 2,660

Factory supervision 1,240

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $14 per hour.

If required, round final answers to the nearest dollar.

a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

Work in Process

Factory Overhead

Wages Payable .

b. Journalize the entry to apply factory overhead to production for November.

Work in Process

Factory Overhead Feedback

Answer 1

Jobs		201	202	203	204	Total DLC
Direct labourr cost		3620	1810	1430	2660	9520
Divid: labor rate per hour		14	14	14	14	14
DLH worked		258.57	129.29	102.14	190	680
OH rate per DLHh		20	20	20	20	20
OH applied		5171.4	2585.8	2042.8	3800	13600
Jouornal entries:
S.no.	Accounts title and explanations				Debit $	Credit $
a.	Work in process inventory				9520
	Factory Overheads				1240
	Wages Payable					10760
	(for recording direct and indirect labor cost incurred0
b.	Work in process inventory				13600
	Factory Overheads					13600
	(for oh applied to jobs)