Preparation of Summary Journal Entries for a Company

Question

GIVEN: Example Manufacturing Company uses a job order costing system. The following information summarizes its operations related to production for January, its first month of operations.

A.  Purchased production materials on account, $85,000.

B.  Production materials of $90,000 were requisitioned to the factory for the five jobs started in January and for general factory use as follows:

C.  Factory labor costs of $71,000 were incurred.  The employee time tickets provided the following:

D.  Factory overhead is allocated to jobs at a rate of $50 per machine hour.  Machine hours used were: 

E.  Depreciation on the factory machinery and equipment was $6,500.

F.  Factory overhead costs incurred on account were $9,800.

G.  Jobs 1001, 1002 and 1004 were completed.

H.  Jobs 1001 and 1002 were shipped and the customers were billed $100,000 for job 1001 and $111,000 for job 1002.

Prepare summary journal entries for information a through h given above. 

Summary

This question belongs to accounting and discusses about summarizing manufacturing costs, journal entries, inventory, cost of goods sold and profit of a company based on the given data.

Total word count: 54