Reference no: EM132952008
Question - Star Corporation uses job order costing. At the beginning of September, the jobs were in process:
|
|
No. 223
|
No. 225
|
|
Materials
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P36,000
|
P13,000
|
|
Labor
|
10,000
|
2,000
|
|
Applied Overhead
|
15,000
|
3,000
|
Star had no finished goods inventory on September 1. During the month, Jobs No. 226, 227, 228, and 220 were started. Materials requisitions for September totaled P 40,000, direct labor cost, P 30,000 and actual factory overhead P 48,000. Factory overhead applied at a rate of 150% of direct labor cost. The only job still in process at the end of September was No. 229 with P 12,000 of materials and P 3,000 labor. Job No. 226, the only finished goods on hand at the end of September, had a total cost of P 15,000.
Requirements -
1. Journal entry to record the applied overhead.
2. Calculate the ending work in process inventory.
3. Journal entry to record the goods completed.
4. Journal entry to transfer finished goods to cost of goods sold.
5. Journal entry to close the under or overapplied factory overhead to cost of goods sold.