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?
See attached file for full problem description.
This solution looks at journal entries and T accounts for a job order costing system.