Accounting Help 13

P-26-8B

Job order Costing Transaction. D & K Enterprises market wicker baskets. During the month of August, the company had four job orders; 501, 502, 503 and 504. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed.

a. Purchased raw materials on account, $44,000

b. Issued direct materials to production:

Job No: 501: $8,200

Job No: 502 9,100

Job No: 503 7,300

Job No: 504 8,500

C. Issued indirect materials to production, $5,000

d. Incurred direct labor costs:

Job No: 501: $4,800

Job No: 502: 4,100

Job No: 503: 4,800

Job No: 504: 5,000

e. Charged indirect labor to production, $3,300.

f. Paid electricity, heating oil, and repair bills for the factory and charged to production, $5,200.

g. Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows:

Job No: 501 $3,100

Job No:502: 3,300

Job No: 503: 3,300

Job No: 504: 3,800

h. Finished Job Nos., 501-504 and transferred to the finished goods inventory accounts as products W, X, Y, and Z.

i. Sold products W, X, Y, and Z for $17,500, $18,000, $16,900, and $19,000 respectively.

Required:

1. Prepare general journal entries to record transactions (a) through (i).

2. Post the entries to work in process and finished goods T accounts only.