Sinatra Industries Inc. uses a job order cost system . The following data summar
ID: 2378631 • Letter: S
Question
Sinatra Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2014, the first month of operations:
Required:
1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Entries Description Debit Credit a.materialaccounts payable
b.work in process
factory overhead
materials
wages payable
c.factory overhead
accounts payable
d.factory overhead
accumulated-depreciation-machinery&equpitment
e.work in process
factory overhead
f.finished goods
work in process
g. Sale/accounts payable
sales
g. Cost of goods sold
finished goods
Sinatra Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2014, the first month of operations: Materials purchased on account, $39,300. Materials requisitioned and factory labor used: Factory overhead costs incurred on account, $7,500. Depreciation of machinery and equipment, $2,640. The factory overhead rate is $60 per machine hour. Machine hours used: Jobs completed: 201, 202, 203 and 205. Jobs were shipped and customers were billed as follows: Job 201, $11,000; Job 202, $14,820; Job 203, $19,920. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Explanation / Answer
Sinatra Industries Inc. uses a job order cost system . The following data summar