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    Job order costing system

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    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

    Questions:
    #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.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:13 pm ad1c9bdddf
    https://brainmass.com/business/the-accounting-cycle/job-order-costing-system-35041

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    Solution Summary

    This solution looks at journal entries and T accounts for a job order costing system.

    $2.49

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