Question : 170. The Stamping Department accepted Job 051507A May 15th to make : 1251544

170. The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels.To complete the job they requisitioned 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The cost driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter. $2.25 is applied as overhead for each drop-forge stroke.  Additionally $375.00 of overhead is applied to each job due to setup and teardown.Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6 1/2 hours of labor by the team. When the job was complete Job 051507A was transferred to Semi-finished Goods Inventory (SFGI). When the job was transferred, 20 sheets were returned unused to raw material inventory, 75 grommet sets were returned, and there were 1,115 strokes on the counter. Journalize all events depicted as of May 15th.

May  15           WIP – Job 051507A     ($1,320.00 + $172.50)        1,492.50                                Raw Material                                 1,492.50      15      WIP – Job 051507A                                                375.00                 WIP – Job 051507A  (1,115 ´ $2.25)               2,508.75                      Mfg Overhead                                  2,883.75      15      WIP – Job 051507A  (($22.50 + $11.10) ´ 6.5 hrs.)      218.40                    Wages Payable                                       218.40      15      SFGI                                               4,559.40             Raw Materials  ($24.00 + 11.25)                35.25                               WIP – Job 051507A            4,594.65

171. On November 14th, the Milling Department has accepted Job 111407A for 1,000 pounds of Cereal Mix. The bill of materials (BOM) for the Cereal Mix is: 

Material Standard Qty.    Standard Cost

Oats525 pounds$1.25 per pound

Wheat450 pounds$1.15 per pound

Barley85 pounds$1.45 per pound

Malt65 pounds$2.15 per pound

Honey25 quarts$1.20 per quart

Water25 gallons$0.45 per gallon

Time:

Miller4 1/2 hours$22.75 per hour

Loader1 1/2 hours$11.50 per hour

Manufacturing overhead is applied at $5.75 per pound completed, and $75 of materials are returned to Raw Materials Inventory. The recipe produced 1,025 pounds of cereal mix. 

(a)Write the journal entry to transfer raw materials to Job 111407A.

(b)Write the journal entry to provide labor to Job 111407A.

(c)Write the journal entry to return 50 pounds oats, 5 pounds of barley, and 5 quarts of honey back to raw materials inventory.

(d)Write the journal entry to apply manufacturing overhead to Job 111407A.

(e)Transfer Job 111407A to finished goods on November 14th.

(a)      Nov. 14  WIP – Job 111407A                                       1,478.00                          Raw Materials                                                              1,478.00      (525 ´ $1.25) + (450 ´ $1.15) + (85 ´ $1.45) + (65 ´ $2.15) + (25 ´ $1.20) + (25 ´ $0.45) =  $1,478(b)      Nov. 14  WIP – Job 111407A                                         119.63                            Wages Payable or Wages Expense                                119.63      (4.5 ´ $22.75) + (1.5  ´ $11.50) = $119.63(c)      Nov. 14  Raw Materials                                                  75.75                             WIP – Job 111407A                                                        75.75      (50 ´ $1.25) + (5 ´ $1.45) + (5 ´ $1.20) = $75.75(d)      Nov 14  WIP – Job 111407A                                        5,893.75                            Mfg Overhead                                                               5,893.75      (1,025 ´ $5.75) = $5,893.75)(e) Nov 14  Finished Goods                                                7,415.63                             WIP – Job 111407A                                                      7,415.63      $1,478.00 + $119.63 – $75.75 + $5,893.75 = $7,415.63