Question

Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. Materials purchased on account $ 197,000, and factory wages incurred $90,200. 2. Materials requisitioned and factory labor used by job: Job Number A20 A21 A22 A23 General factory use Materials $38,240 44,120 37,600 41,870 4,970 $166,800 Factory Labor $19,500 22,200 15,100 25,800 7,600 $90,200 3. Manufacturing overhead costs incurred on account $51,000. 4. Depreciation on factory equipment $16,850. 5. Depreciation on the company's office building was $15,300. 6. Manufacturing overhead rate is 80% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23. Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (To record materials purchases) (To record factory wages) (To record materials put into production) (To record labor put into production) (7)

Answer 1

Solution

Enos Printing Corp

Journal Entries:

No.	Account Titles and Explanation	Ref. No.	Debit	Credit
1	Raw Materials Inventory		$197,000
	Accounts Payable			$197,000
	(To record purchase of materials on account)
3	Work-in-Process		$161,830
	Manufacturing overhead		$4,970
	Raw Materials Inventory			$166,800
	(To record materials put into production)
4	Work-in-Process		$82,600
	Manufacturing overhead		$7,600
	Wages Payable			$90,200
	(To record labor put into production)
5	Manufacturing overhead		$51,000
	Accounts Payable			$51,000
	(To record manufacturing overhead payable)
6	Manufacturing overhead		$16,850
	Accumulated Depreciation - Factory Equipment			$16,850
	(To record depreciation on factory equipment)
7	Depreciation Expense		$15,300
	Accumulated depreciation - office building			$15,300
	(To record depreciation on office building)
8	Work-in-Process		$66,080
	Manufacturing overhead			$66,080
	(To record manufacturing overhead at 80% of direct labor cost; 82,600 x 80% = 66,080)

           

Finished Goods	$245,730
Work-in-Process		$245,730
(To record cost of completed jobs, A20, A21 and A23)

Jobs completed during the quarter: A20, A21 and A23 –

Total Cost = materials + direct labor + manufacturing overhead (80% x direct labor cost)

Job A20 - 38,240 + 19,500 + (19,500 x 80%= 15,600) = $73,340

Job A21 – 44,120 + 22,200 + (22,200 x 80% = 17,760) = $84,080

Job A23 – 41,870 + 25,800 + (25,800 x 80% = 20,640) = 88,310

Total costs of completed jobs = 73,340 + 84,080 + 88,310 = $245,730