Farina Bay s computer system generated the following trial balance on December 31, 2013. The company s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.
DebitCredit
Cash$45,000
Accounts receivable39,000
Raw materials inventory24,500
Goods in process inventory0
Finished goods inventory9,000
Prepaid rent3,000
Accounts payable$11,100
Notes payable14,100
Common stock30,000
Retained earnings93,000
Sales162,300
Cost of goods sold106,000
Factory payroll18,000
Factory overhead28,000
Operating expenses38,000
Totals$310,500$310,500
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
Materials requisition 21-3010:$4,300direct materials to Job 402
Materials requisition 21-3011:$7,600direct materials to Job 404
Materials requisition 21-3012:$1,700indirect materials
Labor time ticket 6052:$3,000direct labor to Job 402
Labor time ticket 6053:$12,000direct labor to Job 404
Labor time ticket 6054:$3,000indirect labor
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.
8.value:
1.50 points
a.Direct materials costs to Goods in Process Inventory.
b.Direct labor costs to Goods in Process Inventory.
c.Overhead costs to Goods in Process Inventory.
d.Indirect materials costs to the Factory Overhead account.
e.Indirect labor costs to the Factory Overhead account.
Required:
1.
Prepare journal entries to assign the above costs.
Record direct materials costs for Jobs 402 and 404.
2.Record direct labor costs for Jobs 402 and 404.
3.Record the entry to allocate overheads to Jobs 402 and 404 at 200% of direct labor costs assigned.
4.Record entry to assign cost of indirect materials.
5.Record entry to assign cost of indirect labor
