A corporation uses a job order costing system to account for production. During the month of January, the following events occurred:
A materials were purchased on account for $35,480
B materials totaling $33,650 were requisitioned for use in production
C direct labor payroll was $15,750 for January
D actual overhead of $41,260 was incurred and paid. (use the account title "Various")
E factory overhead was charged to production at the rate of 280% of direct labor
F completed units costing $85,450 were transferred to finished goods
G units costing $77,825 were sold on account for $101,175
#1 What would the debit/credit journal entries look like for the above transactions?
#2. What would the "T" accounts look like for the following: Materials, Work In Process, Overhead Control and Finished Goods? What would the ending balance be for these accounts, assuming no beginning balances?
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This solution looks at journal entries and T accounts for a job order costing system.