A welding company specializes in custom steel frames and usesjob costing to account for its operations. The followinginformation is available as of May 1 for the work-in-processinventory account:
Job# Direct Materials Direct Labor Man. Overhead Total Cost 304 $3,000 $1,800 $2,520
$7,320 306 4,000 2,100 2,940 9,040 Total Cost 7,000 3,900 5,460 16,360
Welding Company pays an hourly rate of $15 for direct labor.Manufacturing overhead costsare applied to jobs based on the directlabor hours used. During the month of May, Jacob Welding spends$5,800 to purchase materials and $4,650 for manufacturing overhead.The operations in May are summarized below.
Job# Material Requisition
summary
Time Card Summary (Hours 304
$1,100 40 306 900 30 307 2,800 110 308 750 25 Total 5,550 205
Jobs 304, 306, 307 are completed in May but only Jobs 304 and307 are delivered to customers.
Question: Prepare the necessary journal entries for May(assuming any over or underapplied manufacturing overhead iswritten off to cost of goods sold account monthly).
A welding company specializes in custom steel frames and usesjob costing to account for its operations. The followinginformation is available as of May 1 for the work-in-processinventory account:
| Job# | Direct Materials | Direct Labor | Man. Overhead | Total Cost |
|---|---|---|---|---|
| 304 | $3,000 | $1,800 | $2,520 | $7,320 |
| 306 | 4,000 | 2,100 | 2,940 | 9,040 |
| Total Cost | 7,000 | 3,900 | 5,460 | 16,360 |
Welding Company pays an hourly rate of $15 for direct labor.Manufacturing overhead costsare applied to jobs based on the directlabor hours used. During the month of May, Jacob Welding spends$5,800 to purchase materials and $4,650 for manufacturing overhead.The operations in May are summarized below.
| Job# | Material Requisition summary | Time Card Summary (Hours |
|---|---|---|
304 | $1,100 | 40 |
| 306 | 900 | 30 |
| 307 | 2,800 | 110 |
| 308 | 750 | 25 |
| Total | 5,550 | 205 |
Jobs 304, 306, 307 are completed in May but only Jobs 304 and307 are delivered to customers.
Question: Prepare the necessary journal entries for May(assuming any over or underapplied manufacturing overhead iswritten off to cost of goods sold account monthly).
