kb52lb
Jul 5, 2010, 05:31 PM
Question:
Jan. 4 Applied $3,624.00 of direct materials (requisition No. 670) and $8,120 of direct labor (time ticket No. 129) to Job No. 403, which will complete the job. The FICA rate is 7.65% of gross pay and the employees' income tax rate is 18% of gross pay. When preparing the entry for applying direct labor, debit Work in Process for the gross pay, and credit Employees' Income Tax Payable and FICA Tax Payable for the appropriate amounts and Salaries Payable for net pay. Remember that employees are paid on the last day of each month.
Applied factory overhead to Job No. 403 is based upon 125% of direct labor cost.
Transferred the completed job to the finished goods account.
Jan. 5 Sold and shipped Job No. 403 to the appropriate customer. All sales are on account 1/10, net 30 days, FOB shipping point. Bath Designs Inc. marks up all work by 40% of the job cost. Refer to the individual Job Order Cost Sheet for the total cost of the job and multiply the total cost by 140% to determine the selling price for each job.
Bath Designs, Inc. maintains a perpetual inventory system. Each time a sale is made to a customer, you must debit Cost of Goods Sold and credit Finished Goods for the cost of the job.
Answer:
Journal
GJ 5-Jan 8 123 Work in Process 21,894.00
GJ 5-Jan 8 124 Finished Goods 47,415.00
GJ 5-Jan 8 121 Direct Materials 3,624.00
GJ 5-Jan 8 221 Employees' Inc. Tax Pay. 1,461.60
GJ 5-Jan 8 222 FICA Tax Payable 621.18
GJ 5-Jan 8 211 Salaries Payable 6,037.22
GJ 5-Jan 8 511 Factory Overhead 10,150.00
GJ 5-Jan 8 123 Work in Process 47,415.00
GJ 5-Jan 9 501 Cost of Goods Sold 47,415.00
GJ 5-Jan 9 124 Finished Goods 47,415.00
SJ 5-Jan 9 111 AR/Seng Contractors 64,010.25
SJ 5-Jan 9 410 Sales 64,010.25
Jan. 4 Applied $3,624.00 of direct materials (requisition No. 670) and $8,120 of direct labor (time ticket No. 129) to Job No. 403, which will complete the job. The FICA rate is 7.65% of gross pay and the employees' income tax rate is 18% of gross pay. When preparing the entry for applying direct labor, debit Work in Process for the gross pay, and credit Employees' Income Tax Payable and FICA Tax Payable for the appropriate amounts and Salaries Payable for net pay. Remember that employees are paid on the last day of each month.
Applied factory overhead to Job No. 403 is based upon 125% of direct labor cost.
Transferred the completed job to the finished goods account.
Jan. 5 Sold and shipped Job No. 403 to the appropriate customer. All sales are on account 1/10, net 30 days, FOB shipping point. Bath Designs Inc. marks up all work by 40% of the job cost. Refer to the individual Job Order Cost Sheet for the total cost of the job and multiply the total cost by 140% to determine the selling price for each job.
Bath Designs, Inc. maintains a perpetual inventory system. Each time a sale is made to a customer, you must debit Cost of Goods Sold and credit Finished Goods for the cost of the job.
Answer:
Journal
GJ 5-Jan 8 123 Work in Process 21,894.00
GJ 5-Jan 8 124 Finished Goods 47,415.00
GJ 5-Jan 8 121 Direct Materials 3,624.00
GJ 5-Jan 8 221 Employees' Inc. Tax Pay. 1,461.60
GJ 5-Jan 8 222 FICA Tax Payable 621.18
GJ 5-Jan 8 211 Salaries Payable 6,037.22
GJ 5-Jan 8 511 Factory Overhead 10,150.00
GJ 5-Jan 8 123 Work in Process 47,415.00
GJ 5-Jan 9 501 Cost of Goods Sold 47,415.00
GJ 5-Jan 9 124 Finished Goods 47,415.00
SJ 5-Jan 9 111 AR/Seng Contractors 64,010.25
SJ 5-Jan 9 410 Sales 64,010.25