3 direct materials were requisitioned for job 280 d c

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repair work on factory equipment. ——————————————————————————————————————————— 3. Direct materials were requisitioned for Job 280 D C ——————————————————————————————————————————— 4. Factory labor was paid as incurred. G A ——————————————————————————————————————————— 5. Recognized direct labor and indirect labor used D, H G ——————————————————————————————————————————— 6. The production department requisitioned indirect H C materials for use in the factory. ——————————————————————————————————————————— 7. Overhead was applied to production based on a on a predetermined overhead rate of $8 per labor hour D H ——————————————————————————————————————————— 8. Goods that were completed were transferred to E D finished goods. ——————————————————————————————————————————— 9. Goods costing $80,000 were sold for $105,000 B, I J, E on account. ——————————————————————————————————————————— 10. Paid for raw materials purchased previously F A on account. ——————————————————————————————————————————— Ex. 112 Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June. June 1 Purchased raw materials for $25,000 on account. 8 Raw materials requisitioned by production: Direct materials $6,000 Indirect materials 1,000 15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000. 25 Incurred $72,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (4,000 hrs × $12 per hr) = $48,000 Indirect Labor (3,000 hrs × $8 per hr) = 24,000 $72,000 2- 1 6
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Job Order Cost Accounting Ex. 112 (cont.) 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked. 28 Goods costing $18,000 were completed in the factory and were transferred to finished goods. 30 Goods costing $15,000 were sold for $25,000 on account. Solution 112 (16–23 min.) June 1 Raw Materials Inventory ..................................................... 25,000 Accounts Payable ...................................................... 25,000 (Purchase of raw materials on account) 8 Work In Process Inventory .................................................. 6,000 Manufacturing Overhead .................................................... 1,000 Raw Materials Inventory ............................................. 7,000 (To record materials used) 15 Manufacturing Overhead .................................................... 5,100 Cash .......................................................................... 5,100 (To record payment of factory utilities and repairs) 25 Factory Labor ...................................................................... 72,000 Factory Wages Payable ............................................. 72,000 (To record factory labor costs) 25 Work In Process Inventory .................................................. 48,000 Manufacturing Overhead .................................................... 24,000 Factory Labor ............................................................. 72,000 (To assign factory labor to production)
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