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28 Sep 2019
Garcia Manufacturing uses a job order cost system and appliesoverhead to production on the basis of direct labor costs. OnJanuary 1, 2010, Job No. 50 was the only job in process. The costsincurred prior to January 1 on this job were as follows: directmaterials $20,000, direct labor $12,000, and manufacturing overhead$16,000. As of January 1, Job No. 49 had been completed at a costof $90,000 and was part of finished goods inventory. There was a$15,000 balance in the Raw Materials Inventory account.
During the month of January, Garcia Manufacturing began productionon Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50were also sold on account during the month for $122,000 and$158,000, respectively. The following additional events occurredduring the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred factory labor costs of $65,000. Of this amount $16,000related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirectmaterials $17,000; indirect labor $15,000; depreciation expense$19,000, and various other manufacturing overhead costs on account$20,000.
4. Assigned direct materials and direct labor to jobs asfollows.
Job No. Direct Materials Direct Labor
50 $10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000
Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in first part of question.
Account/Description Debit Credit
Work in process inventory 79,000
Raw materials inventory 79,000
(To assign direct materials to production.)
Work in process inventory 50,000
Factory labor 50,000
(To assign labor to production.)
Work in process inventory ???
Manufacturing overhead ???
(To assign manufacturing overhead to production.)
Garcia Manufacturing uses a job order cost system and appliesoverhead to production on the basis of direct labor costs. OnJanuary 1, 2010, Job No. 50 was the only job in process. The costsincurred prior to January 1 on this job were as follows: directmaterials $20,000, direct labor $12,000, and manufacturing overhead$16,000. As of January 1, Job No. 49 had been completed at a costof $90,000 and was part of finished goods inventory. There was a$15,000 balance in the Raw Materials Inventory account.
During the month of January, Garcia Manufacturing began productionon Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50were also sold on account during the month for $122,000 and$158,000, respectively. The following additional events occurredduring the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred factory labor costs of $65,000. Of this amount $16,000related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirectmaterials $17,000; indirect labor $15,000; depreciation expense$19,000, and various other manufacturing overhead costs on account$20,000.
4. Assigned direct materials and direct labor to jobs asfollows.
Job No. Direct Materials Direct Labor
50 $10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000
Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in first part of question.
Account/Description Debit Credit
Work in process inventory 79,000
Raw materials inventory 79,000
(To assign direct materials to production.)
Work in process inventory 50,000
Factory labor 50,000
(To assign labor to production.)
Work in process inventory ???
Manufacturing overhead ???
(To assign manufacturing overhead to production.)
During the month of January, Garcia Manufacturing began productionon Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50were also sold on account during the month for $122,000 and$158,000, respectively. The following additional events occurredduring the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred factory labor costs of $65,000. Of this amount $16,000related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirectmaterials $17,000; indirect labor $15,000; depreciation expense$19,000, and various other manufacturing overhead costs on account$20,000.
4. Assigned direct materials and direct labor to jobs asfollows.
Job No. Direct Materials Direct Labor
50 $10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000
Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in first part of question.
Account/Description Debit Credit
Work in process inventory 79,000
Raw materials inventory 79,000
(To assign direct materials to production.)
Work in process inventory 50,000
Factory labor 50,000
(To assign labor to production.)
Work in process inventory ???
Manufacturing overhead ???
(To assign manufacturing overhead to production.)
Deanna HettingerLv2
28 Sep 2019
