Debit
Credit
Factory OH 40000
Salaries and wages payable
40000
WIP
140000
Salaries and Wages payable
140000
WIP
140000
Factory OH
40000
Salaries and Wages payable
180000
Direct Materials
150000
Indirect materials
15000
1
direct labor
250000
indirect labor
25000
diirect materials
2
indirect
1
2
Payroll cost
750000
Direct labor
550000
Raw maaterials (direct and indirect)
250000
Indirect materials
50000
Beg. WIP Inv.
DM
DL
Fac. OH
20000
20000
10000
9000
19000
20000
OH (total estimated account
1170000
Total estimated account
900000
1.3
EXAMPLE
OH Rate
0.4
WIP
Factory OH
Job 1
Job 2
Job 3
DM
5000
7000
1500
DL
9000
4000
3000
Factory OH
2000
2800
600
Total cost to date
16000
13800
5100
Journal Entry
Purchase Materials making dresses
85,000
Date
9/1/2022
Indirect materials used
1500
9/14/2022
Direct materials
13500
9/14/2022
Factory Payroll
50000
Indirect Labor
10000
9/14/2022
Total estimated OH
95000
Direct Labor dollar
40000
9/14/2022
POHR (predetermined OH rate)
2.38
Job 1
35000
9/14/2022
Utilities in Factory
8500
Depr. On factory equipment
15000
Rent on factory equipment
7500
Factory OH
Supervisory for factory salary
5000
Management office rent
8500
Direct labor
40000
Direct materials
13500
Direct
9/14/2022
Example
Direct Materials
2250
Direct Labor
1350
Estimated OH
1485
Total Cost of Job
5085
Beg. Inv
9000
Purchase
52000
53800
Ending Inv.
7200
actual
actual
Raw Materials
actual
15000
1000
Materials
Raw Mterials
165000
Accounts Payable
165000
Purchase materials for use in mfg
WIP
150000
Factory OH
15000
Raw Materials
165000
Labor
WIP
250000
Salaries and wages payable
250000
Factory OH
25000
Salaries and Wages payable
25000
Materials
WIP
200000
Factory OH
50000
Raw Materials
250000
Labor
WIP
550000
Salaries and Wages Payable
550000
Factory OH
200000
Salaries and Wages Payable
200000
Total estimated account
100000
total esitimated activity
50000
$2.00
job 1
direct labor hours
10000
$20,000.00
WIP
20,000.00
$
Factory OH
20,000.00
$
Job 1
Direct labor hours
10000
20000
Job 2
Direct labor hours
250
$500.00
Factory OH
Job 1
DM Cost
50000
65000
OH Applied
Job 1
DM
5000
2000
DL
Job 2
DM
7000
2800
Job 3
DM
1500
600
WIP-Job 1 & 3
Finished Goods
21100
13800
Account
Debit
Credit
Raw Material Inventory
85000
Accounts Payable
85000
Purchase Materials
WIP
13500
Raw Materials
13500
Record direct materials used
Factory OH
1500
RM Inventory
1500
Record indirct materials
WIP
40000
Factory OH
10000
Factory wages payable
50000
record direct/ indirect labor
WIP
83125
Factory OH
83125
recordding estimated OH
Factory OH
Utilites payable
8500
Rent on factory equipment
7500
Salaries and wages payable
5000
Accumulated Depr.
15000
recording actual OH
Rent expense
8500
Cash
8500
expense rent for management office
Beg. Inv
19950
DM
53800
DL
35000
Estimated FOH
47110
139860
COGM
Ending WIP
16000
Factory Overhead
Factory Utilities
12000
Factory Supplies
3200
Indirect Labor
7660
Repairs Fac
1500
Rental Cost
22750
applied OH- used POHR rate to get this #
Factory Overhead
Work in Process
16000
Factory OH
1000
COGS
1000
djust overapplied factory OH
COGS
1000
Factory OH
1000
adjusted underapplied OH
Journal Entry
WIP
2000
Facotry OH
2000
Beg Inv.
16450
CGM
139860
143010
COGS
Ending Inv
13300
Finished Goods
