b Order Costing c Factory overhead costs incurred on account

b Order Costing c. Factory overhead costs incurred on account, $6,000. d. Depreciation of machinery and equipment, $4,100. e. The factory overhead rate is $40 per machine hour. Machine hours used: Job 101 102 103 104 105 106 Total Machine Hours 154 160 126 238 160 174 1,012 f. Jobs completed: 101, 102, 103, and 105. 8. Jobs were shipped and customers were billed as follows: Job $80,700; Job 105, $45,500. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of 3. Prepare a schedule of unfinished jobs to support the balance in the work in process 4. Prepare a schedule of completed jobs on hand to support the balance in the finished the end of the month. account goods account PR 2-3R lgh eu

Solution

Date Account title Debit credit a Raw material Inventory 770000 Accounts payable 770000 b Work in process 604200 Manufacturing overhead 75800 Raw material inventory 680000 [Raw material issued ] c Work in process 574000 Manufacturing overhead 182000 wages payable 756000 d Manufacturing overhead 245000 sellling expense 171500 Administrative expense 110600 Accounts payable 527100 e Manufacturing overhead 24500 selling expense 28420 administrative expense 16660 Prepaid expense 69580 f Manufacturing overhead 45500 Depreciation expense-office equipment 61800 Depreciation expense-office building 14900 Accumulated depreciation-factory equipment 45500 Accumulated depreciation-office equipment 61800 Accumulated depreciation-office building 14900 g Work in process 568500 manufactuirng overhead 568500 h FInished goods inventory 1500000 work in process 1500000 i cost of goods sold 1375000 FInished goods inventory 1375000