Garnett Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s production.
-
Materials purchased on account $192,000, and factory wages incurred $87,300.
-
Materials requisitioned and factory labor used by job:
Job Number
Materials
Factory Labor
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
-
Manufacturing overhead costs incurred on account $39,500.
-
Depreciation on machinery and equipment $14,550.
-
Manufacturing overhead rate is 80% of direct labor cost.
-
Jobs completed during the quarter: A20, A21, and A23.
Instructions
Prepare entries to record the operations summarized above. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
| Account/Description | Debit | Credit | |
| 1. | |||
| (To record materials purchased.) | |||
| (To record factory wages incurred.) | |||
| 2. | |||
| (To record material requisitioned.) | |||
| (To record factory labor used.) | |||
| 3. | |||
| 4. | |||
| 5. | |||
| 6. | |||
Complete the schedule showing the individual cost elements and total cost for each job in item 6.
|
Job |
Direct Material |
Direct Labor |
Manufacturing Overhead |
Total |
| A20 | $ | $ | $ | $ |
| A21 | ||||
| A23 |
|
|||
|
$ |