Bookmarks Window Help 2 CengageNowv2 Online teaching and le

Bookmarks Window Help /2 CengageNowv2 | Online teaching and learning resource from Cengage Learning +Study Figure 5-14 Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows: Job #683 Job #684 Job #685 Job #686 Job #687 Direct materials $11,000 $8,000 $31,400 $16,700 $6,000 Direct labor $21,000 $6,000 $12,300 $8,450 $2,500 Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17, Job 684 was completed on December 21 and the client was billed at cost plus 4s%. Au other jobs remained in process Problem 5-23

Solution

No Account Titles Debit Credit Job 683 Job 684 Job 685 Job 686 Job 6867 Total A Work in Process $ 73,100 $        11,000 $        8,000 $        31,400 $        16,700 $        6,000 $        73,100 Raw Materials $ 73,100 B Work in Process $ 50,250 $        21,000 $        6,000 $        12,300 $          8,450 $        2,500 $        50,250 Wages Payable $ 50,250 C Work in Process $ 40,200 $50,250 Overhead Control $ 40,200 x 80% $ 40,200.00 D Finished Goods $ 95,840 Work in Process $ 95,840 (23500+8000+31400+6000+12300+80%*(6000+12300)) E-COST Cost of Goods Sold $ 42,300 (23500+8000+6000+80%*6000) Finished Goods $ 42,300 E-SALE Accounts Receivable $ 61,335 (42300*145%) Sales $ 61,335 F Cost of Goods Sold $        900 (41100-40200) Overhead Control $        900