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 $ 197,900, and factory wages incurred $ 93,100.
2.		Materials requisitioned and factory labor used by job:

Job Number		Materials		Factory Labor
A20		$ 37,740		$ 19,200
A21		44,320		23,600
A22		38,000		15,600
A23		41,770		27,100
General factory use		5,270 $167,100		7,600 $93,100

3.		Manufacturing overhead costs incurred on account $ 53,000.
4.		Depreciation on factory equipment $ 17,150.

5.		Depreciation on the company’s office building was $ 14,800.
6.		Manufacturing overhead rate is 83% of direct labor cost.
7.		Jobs completed during the quarter: A20, A21, and A23.

Prepare a schedule showing the individual cost elements and total cost for each job in item 7.

Job		Direct Materials		Direct Labor		Manufacturing Overhead		Total
A20		$		$		$		$
A21
A23
								$

Prepare entries to record the operations summarized above.

No.	Account Titles and Explanation	Debit	Credit
(1)
	(To record materials purchases)
	(To record factory wages)
(2)
	(To record materials put into production)
	(To record labor put into production)
(3)
(4)
(5)
(6)
(7)

Answer 1

1) Schedule Showing Individual cost elements and total cost for each job Total Direct Materials 37740 44320 41770 Direct Labor Man. Overhead A20 A21 A23 19200 23600 27100 15936 19588 22493 72876 87508 91363 123830 69900 58017 251747 Manufacturing Overhead-Direct Labor x 83% 19200 x 83% =15936 23600 x 83%-19588 27100 x 83% = 22493

Journal Entries 1) Raw Materials Inventory To record material purchases) Factory Labor (To record factory wages) 197900 Accounts Payable 197900 93100 Factory Labor Payable 93100 2) Work in Process Inventory 161830 5270 Manufacturing Overhead Raw Materials Inventory 167100 To record materials put into production) Work in Process Invento 85500 Manufacturing Overhead To record labor put into production) Manufacturing Overhead To record manufacturing overhead incurred) Manufacturing Overhead (To record depreciation on factory equipment) Depreciation Expense To record depreciation on office building) Work in Process Inventory ( 85500 * 83%) To record manufacturing overhead applied to production) Finished Goods Inventory (Refer Schedule) To record jobs completed to FG) 7600 Factory Labor 93100 53000 Accounts Payable 53000 4) 17150 Accumulated Depreciation equipment 17150 14800 Accumulated Depreciation - Office Building 14800 70965 Manufacturing Overhead 70965 251747 Work in Process Inventory 251747