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Farina Bay’s computer system generated the following trial balance on December 31, 2013. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.

  

  Debit  Credit 
  Cash$45,000    
  Accounts receivable 39,000    
  Raw materials inventory 24,500    
  Goods in process inventory 0    
  Finished goods inventory 9,000    
  Prepaid rent 3,000    
  Accounts payable   $11,100 
  Notes payable    14,100 
  Common stock    30,000 
  Retained earnings    93,000 
  Sales    162,300 
  Cost of goods sold 106,000    
  Factory payroll 18,000    
  Factory overhead 28,000    
  Operating expenses 38,000       
  
 
 
  Totals$310,500 $310,500 
  
 
 

  

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

  

  
  Materials requisition 21-3010: $4,300 direct materials to Job 402
  Materials requisition 21-3011: $7,600 direct materials to Job 404
  Materials requisition 21-3012: $1,700 indirect materials
  Labor time ticket 6052: $3,000 direct labor to Job 402
  Labor time ticket 6053: $12,000 direct labor to Job 404
  Labor time ticket 6054: $3,000 indirect labor

  

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.



 8.
value:
1.50 points
 
 
a.Direct materials costs to Goods in Process Inventory.
b.Direct labor costs to Goods in Process Inventory.
c.Overhead costs to Goods in Process Inventory.
d.Indirect materials costs to the Factory Overhead account.
e.Indirect labor costs to the Factory Overhead account.

  

Required:
1.

Prepare journal entries to assign the above costs.

 

  • Record direct materials costs for Jobs 402 and 404.
  • 2.
    Record direct labor costs for Jobs 402 and 404.
  • 3.
    Record the entry to allocate overheads to Jobs 402 and 404 at 200% of direct labor costs assigned.
  • 4.
    Record entry to assign cost of indirect materials.
  • 5.
    Record entry to assign cost of indirect labor

 

  

    

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