Exercises: Set B
EXERCISES: SET B
The gross earnings of the factory workers for Bumbrey Company during the month of
January are $56,000. The employer’s payroll taxes for the factory payroll are $8,000. The fringe
benefits to be paid by the employer on this payroll are $4,000. Of the total accumulated cost of
factory labor, 85% is related to direct labor and 15% is attributable to indirect labor.
Prepare the entry to record the factory labor costs for the month of January.
Prepare the entry to assign factory labor to production.
March Manufacturing uses a job order cost accounting system. On May 1, the company
has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $2,000,
and Job No. 430 $1,200. During May, a summary of source documents reveals the following.
March Manufacturing applies manufacturing overhead to jobs at an overhead rate of 75% of di-
rect labor cost. Job No. 429 is completed during the month.
Prepare summary journal entries to record: (i) the requisition slips, (ii) the time tickets,
(iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429.
Post the entries to Work in Process Inventory, and prove the agreement of the control
account with the job cost sheets.
A job order cost sheet for Brett Company is shown below.
Prepare entries for factory
(SO 2, 3)
Prepare journal entries for
(SO 2, 3, 4, 5)
Job No. 92
For 2,000 Units
Beg. bal. Jan. 1
Cost of completed job:
Unit cost ($42,900
On the basis of the foregoing data answer the following questions.
(1) What was the balance in Work in Process Inventory on January 1 if this was the only un-
(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead
rate was used in each year?
Prepare summary entries at January 31 to record the current year’s transactions pertaining to
Job No. 92.
Analyze a job cost sheet and
prepare entries for manufactur-
(SO 2, 3, 4, 5)