Norton Custom Furniture Builders makes handmade, custom furniture and uses job order costing. Norton worked on one job (Job A) during the month of October. Complete the journal entries to record the transactions shown below for Norton for the month of October. Note that items in the first two columns should contain the names of the accounts, and items in the last two columns should contain the numerical amounts of the entries. You must spell out all account names. Below is a list of account names. Some may not be used, and some may be used more than once. Do not use dollars signs or commas in your numbers.
Factory Overhead
Cash
Accounts Receivable
Materials Inventory
Work in Process Inventory
Finished Goods Inventory
Accounts Payable
Wages Payable
Sales Revenue
Cost of Goods Sold
Wages Expense
A. Purchased materials on account for $50,000.
debit | |||
credit |
A. Assigned direct materials to Job A in the amount of $15,000.
debit | |||
credit |
B. Assigned direct labor costs to Job A in the amount of $12,000. These wages will be paid at a later date.
debit | $ | ||
credit | $ |
C. Allocated factory overhead of $7,500 to Job A.
debit | $ | ||
credit | $ |
D. Rebel Cabinet incurred actual overhead costs of $6,500. Prepare the journal entry to dispense of the over/under applied factory overhead.
debit | |||
credit |
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