T-account for factory overhead

Assignment Help Accounting Basics

Reference no: EM13913287

The November 1 balances for the following accounts are:

Raw Materials Inventory $ 5,000

Work in Process Inventory $ 4,500 (Job 206 - $1,500; Job 207 - $3,000)

Finished Goods Inventory $ -0-

Requirements:

1. Record the following journal entries for the month of November.

2. Prepare a T-account for each of the three inventory accounts. Compute the ending balance of each account.

3. Prepare a T-account for Factory Overhead and compute the amount of over/under-applied overhead.

4. Compute the total cost of each job.

1 - The transactions for November are as follows:

a. Purchased materials on account, $20,000.

b. Issued materials to production as follows:

Job 206 - $2,750

Job 207 - $3,100

Job 208 - $2,500

Job 209 - $1,500

Job 210 - $1,850

Job 211 - $2,100

c. Issued indirect materials to production, $1,300.

d. The direct labor rate is $12 per hour. Direct labor hours incurred are as follows:

Job 206 220 DLH

Job 207 240 DLH

Job 208 180 DLH

Job 209 110 DLH

Job 210 130 DLH

Job 211 150 DLH

e. Indirect factory labor incurred, $3,000.

f. Incurred various actual factory overhead costs on account, $7,750.

g. Factory overhead is applied at a rate of $9 per direct labor hour.

h. Completed Jobs #206, 207, and 211.

i. Sold Jobs #206 and #207. Customers billed $11,100 for Job #206 and $14,000 for Job #207.

Reference no: EM13913287

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