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Quiz 2 - 1,850 Direct labor costs June 6,000 4,750 2,000...

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ACCT 310 - Quiz 2 Fall 2008 Lucinda Guitar Company manufactures custom-made classical guitars. In accounting for product costs, the company has a perpetual inventory system and uses a job-order costing system along with normal costing. For calendar year 2008, plant-wide manufacturing overhead is applied on the basis of direct labor costs. The company worked on only four guitars during the month of June 2008: Job 1011, Job 1012, Job 1013, and Job 1014. Jobs 1011 and 1012 had been started in May. The balance of the company’s single Work in Process general ledger account on June 1 was $2,000. Direct labor costs incurred during June were $27,000. Manufacturing overhead costs incurred during the month were $25,000, of which 60% was depreciation on manufacturing equipment and the remainder was accrued indirect labor costs. Data from the job-cost sheets for the guitars in process during June are presented below: Job 1011 Job 1012 Job 1013 Job 1014 Balance, June 1 $ 800 $ ? $ 0 $ 0 Direct materials costs - June 250 1,250 2,100
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Unformatted text preview: 1,850 Direct labor costs - June 6,000 ? 4,750 2,000 Manufacturing overhead costs - June 5,100 ? ? ? During June, Jobs 1011 and 1012 were completed. Jobs 1013 and 1014 were still in process on June 30. Advertising costs of $7,500 were incurred in June. Required: Please make appropriate summary general journal entries for all the transactions that the information above indicates occurred during June. The quiz is due and will be collected at the start of class on Tuesday, September 23. No quizzes will be accepted before this time unless prior approval is received from and arrangements are made with the instructor. No late quizzes will be accepted. Please provide complete, systematic, and neat documentation of any computations that you make. No credit will be given for figures requiring computations unless adequate documentation of those computations is displayed on the quiz solution. If your solution spans more than one page, please staple the pages together....
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