Question

Question 10 The following manufacturing costs were incurred: 1. Materials purchased on account were $256,500, and wages for factory workers were $112,070. 2. Materials requisitioned and factory labour used by each job were as follows: Job Number A1 A2 A3 A4 General factory use Total Materials $43,610 33,470 39,870 39,080 3,180 159,210 Factory Labour $28,900 34,200 17,600 25,900 5,470 112,070 3. Manufacturing overhead costs incurred on account were $69,700. 4. Depreciation on machinery and equipment was $16,820. 5. The manufacturing overhead rate is 75% of the direct labour cost. Prepare entries for manufacturing costs and assigning costs to production. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Credit Debit (To record purchases of raw materials on account) (To record factory labour costs) (To record manufacturing overhead costs) (To assign factory labour to production) (To assign raw materials to production)

Answer 1

Account Titles and Explanation	Debit	Credit
Raw Materials Inventory	256500
Accounts Payable		256500
(To record purchases of raw materials on account)
Factory labour	112070
Factory Wages Payable		112070
(To record factory labour costs)
Manufacturing Overhead	86520
Accounts Payable		69700
Accumulated Depreciation		16820
(To record manufacturing overhead costs)
Work in Process inventory	106600		=28900+34200+17600+25900
Manufacturing Overhead	5470
Factory labour		112070
(To assign factory labour to production)
Work in Process inventory	156030		=43610+33470+39870+39080
Manufacturing Overhead	3180
Raw Materials Inventory		159210
(To assign raw materials to production)
Work in Process inventory	79950		=106600*75%
Manufacturing Overhead		79950
(To assign overhead to production)