Question : 165. ABC Printing Company uses a job order cost system. (a) Indicate the : 1239432

 

165. ABC Printing Company uses a job order cost system. 

(a)

Indicate the source of the data for debiting Work in Process for each of the following:

 

(1)

Direct materials requisitioned

 

(2)

Direct labor used

 

 

(b)

Indicate the source of the data for crediting Work in Process for jobs completed.

 

 

(c)

Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.

 

 

 

 

 

 

 

 

 

166. During June, the receipts and issuances of Material No. A2FO are as follows: 

 

 

Received

June  3

Balance

1,100 units at $15

       16

 

1,700 units at $17

       29

 

900 units at $18

 

 

 

 

 

Issued

June 11

 

700 units for Job No. 116

        18

 

1,900 units for Job No. 117

        30

 

800 units for Job No. 118

 

 

 

 

(a)

Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method.

 

 

(b)

Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

 

 

 

 

 

 

 

 

167. A summary of the time tickets for August follows: 

Description

Amount

Description

Amount

Job No. 321

$11,000

Job No. 342

$8,300

Job No. 329

    9,200

Job No. 346

  5,700

Job No. 336

    5,000

Indirect labor

  8,000

 

 

 

 

Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost. 

 

 

 

 

 

168. The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: 

Work in Process

Balance, July 1

60,200  

 

 

Direct materials

147,000  

 

 

Direct labor

120,000  

 

 

 

 

 

 

Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200. 

(a)

Prepare the journal entries to record (1) the application of factory overhead to production during July and (2) the jobs completed during July.

 

 

(b)

What is the balance of the factory overhead account on July 31?

 

 

(c)

Was factory overhead overapplied or underapplied on July 31?

 

 

(d)

Determine the cost of the unfinished jobs on July 31.

 

 

 

 

 

 

 

 

 

 

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