Elder Corporation incurred the following transactions.
1. Purchased raw materials on account $46,300.
2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials.
3. Factory labor costs incurred were $53,900, of which $49,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable.
4. Time tickets indicated that $48,000 was direct labor and $5,900 was indirect labor.
5. Overhead costs incurred on account were $80,500.
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $88,000 were completed and transferred to finished goods.
8. Finished goods costing $75,000 to manufacture were sold on account for $103,000.
Instructions
Journalize the transactions. (Omit explanations.)
|
Job Number |
Materials |
Factory |
|
A20 |
$ 35,240 |
$18,000 |
|
A21 |
42,920 |
22,000 |
|
A22 |
36,100 |
15,000 |
|
A23 |
39,270 |
25,000 |
|
General factory use |
4,470 |
7,300 |
|
$158,000 |
$87,300 |
3. Manufacturing overhead costs incurred on account $39,500.
4. Depreciation on machinery and equipment $14,550.
5. Manufacturing overhead rate is 80% of direct labor cost.
6. Jobs completed during the quarter: A20, A21, and A23.
Instructions
Prepare entries to record the operations summarized above. (Prepare a schedule showing the individual cost elements and total cost for each job in item 6.)