Question : 173. On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper : 1239434

 

173. On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper on account at $125.00 per roll for use within the production process. On January 5th 4 rolls of this paper are issued to Job 010507A in the Printing Department. The Printing Department records $675.00 in direct labor and $1,150.00 of factory overhead to Job 010507A. On January 8th Printing transfers Job 010507A to the Folding Department. The folding department applies $450.00 in direct labor and $655.00 in factory overhead to Job 010507A. Job 010507A is transferred to Finished Goods Inventory on January 9th. 

(a)

Journalize the purchasing of the paper to Raw Materials Inventory.

 

 

(b)

Journalize the transfer of raw materials to work in process, the application of direct labor, and the application of manufacturing overhead to Job 010507A while in the Printing Department.

 

 

(c)

Journalize the transfer of Job 010507A to the Folding Department at actual cost.

 

 

(d)

Journalize the application of direct labor, and the application of manufacturing overhead to Job 010507A while in the Folding Department.

 

 

(e)

Journalize the transfer of Job 010507A to Finished Goods Inventory at actual cost.

 

 

 

 

 

 

 

 

174. 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. 

 

 

 

 

 

175. 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:

 

Oats

525 pounds

$1.25 per pound

 

Wheat

450 pounds

$1.15 per pound

 

Barley

85 pounds

$1.45 per pound

 

Malt

65 pounds

$2.15 per pound

 

Honey

25 quarts

$1.20 per quart

 

Water

25 gallons

$0.45 per gallon

 

Time:

 

 

 

Miller

4 1/2 hours

$22.75 per hour

 

Loader

1 1/2 hours

$11.50 per hour

 

 

 

 

Manufacturing overhead is applied at $5.75 per pound completed, and $75.75 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)

Write the journal entry to transfer Job 111407A to finished goods on November 14th.