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3 November, 18:28

Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. Materials purchased on account $197,900, and factory wages incurred $93,100. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 $37,740 $19,200 A21 44,320 23,600 A22 38,000 15,600 A23 4.1,770 27,100 General factory use 5,270 7,600 167,100 $93,100 3. Manufacturing overhead costs incurred on account $53,000. 4. Depreciation on factory equipment $17,150. 5. Depreciation on the company's office building was $14,800. 6. Manufacturing overhead rate is 83% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23. Prepare entries to record the operations summarized above.

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  1. 3 November, 18:54
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    raw materials 197900

    accounts payable 197900

    WIP 161830

    factory overhead 5270

    raw materials 167100

    WIP 85500

    factory overhead 7600

    wages payables 93100

    factory overhead 53000

    accounts payable 53000

    factory overhead 17150

    acc. Dep-equipment 17150

    dep expense * 14800

    acc. Dep - Off Building 14800

    WIP* * 70965

    factory overhead 70965

    Finished Goods** * 251747

    WIP inventory 251747

    Explanation:

    * as the building is not related to the manufacturing process we cannot capitalized through inventory We will record as cost ofo the period therefore, depreciation expense

    * * the aplied overhead will be the amount of direct labor added during the period time 83%

    85,500 x 83% = 85,500 * 0.83 = 70,965

    ** * we will have to add up the jobs cost to detemrinate how much of the work in process inventory becomes finished good

    Job Materials / / Labor / / Overhead

    A20 $ 37,740 $ 19,200 + 19,200 x 0.83

    A21 $ 44,320 $ 23,600 + 23,600 x 0.83

    A23 $ 41,770 $ 27,100 + 27,100 x 0.83

    Total 251,747
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