- Prepare The Journal Entries To Record 1 The Purchase Of Raw Materials 2 The Factory Labor Costs Incurred And 3 T 1 (165.45 KiB) Viewed 30 times
Account Titles and Explanation Debit Credit
Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) t
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Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) t
Prepare the journal entries to record (1) the purchase of rawmaterials, (2) the factory labor costs incurred, and (3) themanufacturing overhead costs incurred during the month ofJanuary. (List all debit entries before creditentries. Credit account titles are automatically indented whenamount is entered. Do not indent manually.)
Ivanhoe Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $17,200, direct labor $10,320, and manufacturing overhead $13,760. As of January 1, Job 49 had been completed at a cost of $77,400 and was part of finished goods inventory. There was a $12,900 balance in the Raw Materials Inventory account on January 1. During the month of January, Ivanhoe Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $104,920 and $135,880, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $77,400 on account. Incurred factory labor costs of $60,200. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,320; and various other manufacturing overhead costs on account $13,760. Assigned direct materials and direct labor to jobs as follows. 2. 3. 4. 5. Job No. Direct Materials 50 51 52 $8,600 33,540 25,800 Direct Labor $4,300 21,500 17,200 Assigned indirect materials of $14,620 and indirect labor of $17,200.
Account Titles and Explanation Debit Credit
Ivanhoe Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $17,200, direct labor $10,320, and manufacturing overhead $13,760. As of January 1, Job 49 had been completed at a cost of $77,400 and was part of finished goods inventory. There was a $12,900 balance in the Raw Materials Inventory account on January 1. During the month of January, Ivanhoe Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $104,920 and $135,880, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $77,400 on account. Incurred factory labor costs of $60,200. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,320; and various other manufacturing overhead costs on account $13,760. Assigned direct materials and direct labor to jobs as follows. 2. 3. 4. 5. Job No. Direct Materials 50 51 52 $8,600 33,540 25,800 Direct Labor $4,300 21,500 17,200 Assigned indirect materials of $14,620 and indirect labor of $17,200.
Account Titles and Explanation Debit Credit