Part 1 - Job Order Costing Pet Flex, Workout Clothes for your Poodle, uses a job
ID: 2552567 • Letter: P
Question
Part 1 - Job Order Costing Pet Flex, Workout Clothes for your Poodle, uses a job order cost system. The following data summarize the operations related to production in July. Assume SO starting balances. . Materials purchased for cash, $500,000 2 Materials requisitioned and factory labor used Job MaterialsFactory 501 502 503 504 Labor $28,000 $36,500 $18,700 $66,500$42,000 $37,000 $32,100 $33,000 $37,050 For $9,600 General Factory Use 3. Factory overhead costs incurred on account $20,000 4. Depreciation of machinery and equipment $24,000 5. The predetermined factory overhead rate is $25.00 per machine hour. Machine hours used are a. 501: 215 b. 502: 230 c. 503: 165 d. 504: 270 6. Jobs completed are 501, 502, 503 7. Jobs were shipped and customers were billed as follows a. 501: $400,000 b. 502: $410,000 REQUIRED: Journalize the required entries to record the above summarized operations.Explanation / Answer
The journal entries are prepared as below:
_____
Notes:;
The calculation of factory overhead applied to jobs (for event 6) is given below:
Event Account Titles Debit Credit 1) Raw Materials Inventory $500,000 Cash $500,000 2) Work in Process Inventory (178,250 - 9,600) $168,650 Manufacturing Overhead $9,600 Raw Materials Inventory (32,100+33,000+37,050+66,500+9,600) $178,250 Work in Process Inventory (162,200 - 37,000) $125,200 Manufacturing Overhead $37,000 Factory Payroll/Factory Labor/Wages Payable (28,000+36,500+18,700+42,000+37,000) $162,200 3) Manufacturing Overhead $20,000 Accounts Payable $20,000 4) Manufacturing Overhead $24,000 Accumulated Depreciation $24,000 5) Work in Process Inventory [(215+230+165+270)*25] $22,000 Manufacturing Overhead $22,000 6) Finished Goods Inventory (65,475+75,250+59,875) [Refer to Notes for Calculation] $200,600 Work in Process Inventory $200,600 7) Accounts Receivables (400,000+410,000) $810,000 Sales $810,000 Cost of Goods Sold (65,475+75,250) $140,725 Finished Goods Inventory $140,725