Exercise 28 Enos Printing Corp uses a job order cost system

Exercise 2-8 Enos Printing Corp. uses a job order cost system. The following data summarize the operatlons related to the first quarter\'s productlon 1. Materials purchased on account $196,300, and factory wages incurred $94,100 2. Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 A23 General factory use Materials Factory Labor $36,540 44,220 38,100 42,070 5,170 $166,100 $19,500 23,300 16,800 26,600 7,900 $94,100 3. Manufacturing overhead costs incurred on account 52,700 4. Depreciation on factory equipment 15,550 5. Depreciation on the company\'s office building was $14,300 6. Manufacturing overhead rate is 81% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23 Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Solution

Solution:-

Working note 1:-

* Direct labor * 81%

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Sr. No.	Description	Debit	Credit
1	Raw material inventory	196,300
	Accounts payable		196,300
	(To record materials purchased.)
	Factory labor	94,100
	Factory wages payable		94,100
	(To record factory wages incurred)
2	Work in progress inventory	160,930
	Manufacturing overhead	5,170
	Raw material inventory		166,100
	(To record material requisitioned)
	Work in progress inventory	86,200
	Manufacturing overhead	7,900
	Factory labor		94,100
	(To record factory labor used)
3	Manufacturing Overhead	52,700
	Accounts Payable		52,700
4	Manufacturing Overhead	15,550
	Accumulated Depreciation-Equipment		15,550
5	Work in Process Inventory (86,200 * 81%)	69,822
	Manufacturing Overhead		69,822
6	Finished Costs Inventory (wn1)	248,444
	Work in Process Inventory		248,444