Homework SourseCorp uses a job order cost system The following data summanz
Corp, uses a job order cost system. The following data summanze the operations related to the first quarter\'s production 1: Materials purchased on account $197,800, and factory wages incurred $93,400. 2 Materials requisitioned and factory labor used by job: Labor $36,240 45,120 423 General factory u 41,270 4,970 $163,800 15,600 27,000 8,200 $93,400 on factory equipment $16,150. on the c building was $14.900. overhead rate is 83% of direct labor cost. No. Account Titles and Explanation Debit 
Solution
Journal Entry Account Titles Debit Credit 1 Raw Materials Inventory $ 197,800 Accounts Payable $ 197,800 (To record materials purchased.) Factory Labor $ 93,400 Factory Wages Payable $ 93,400 (To record factory wages incurred.) 2 Work in Process Inventory $ 158,830 Manufacturing Overhead $ 4,970 Raw Materials Inventory $ 163,800 (To record material requisitioned.) 3 Work in Process Inventory $ 85,200 Manufacturing Overhead $ 8,200 Factory Labor $ 93,400 (To record factory labor used.) 4 Manufacturing Overhead $ 53,100 Wages Payable $ 53,100 5 Manufacturing Overhead $ 16,150 Accumulated Depreciation--Equipment $ 16,150 6 Depreciation $ 14,900 Accumulated Depreciation--Equipment $ 14,900 7 Work in Process Inventory $ 70,716 Manufacturing Overhead $ 70,716 (85,200 x 83%) 8 Finished Goods Inventory $ 314,746 Work in Process Inventory $ 314,746 NOTE. 83% of DL Job Direct Material Direct Labor Manufacturing Overhead Total A20 $ 36,240 $ 19,700 $ 16,351 $ 72,291 A21 $ 45,120 $ 22,900 $ 19,007 $ 87,027 A22 $ 36,200 $ 15,600 $ 12,948 $ 64,748 A23 $ 41,270 $ 27,000 $ 22,410 $ 90,680 Total $ 158,830 $ 85,200 $ 70,716 $ 314,746