Custom Cabinets Inc. manufactures goods on a job order basis.
During the month of November, three jobs were started. (There was no work
In process at the beginning of the month.) Jobs 401 and 402 were completed
And sold for $14,500 and $19,000, respectively, during the month; Job 403
Was still in process at the end of November.

The following data are taken from the job cost sheets for each job.
Factory overhead charges include a total of $900 of indirect materials
And $600 of indirect labor. One work in process control account is used.

Job 401 Job 402 Job 403
Direct Materials $3200 $3800 $2000
Direct Labor $2400 $3500 $1500
Factory Overhead $1250 $2000 $ 850

Prepare a journal entry to record each of the following;
a. Materials used
b. Factory wages and salaries earned
c. Factory Overhead transferred to Work in Process
d. Jobs completed
e. Jobs sold

Custom Cabinets Inc. manufactures goods on a job order basis.
During the month of November, three jobs were started. (There was no work
in process at the beginning of the month.) Jobs 401 and 402 were completed
and sold for $14,500 and $19,000, respectively, during the month; Job 403
was still in process at the end of November.

The following data are taken from the job cost sheets for each job.
Factory overhead charges include a total of $900 of indirect materials
and $600 of indirect labor. One work in process control account is used.

Job 401 Job 402 Job 403
Direct Materials $3200 $3800 $2000
Direct Labor $2400 $3500 $1500
Factory Overhead $1250 $2000 $ 850

Prepare a journal entry to record each of the following;
a. Materials used
b. Factory wages and salaries earned
c. Factory Overhead transferred to Work in Process
d. Jobs completed
e. Jobs sold

How hard can it be, let's see your efforts and tell us what problems you have

how hard can it be, let's see your efforts and tell us what problems you have


I get very confused reading the problem, don't know why, but it's really hard...

What do I do with "Factory Overhead charges include a total of $900 of indirect materials and $600 indirect labor"

Not sure of the journal entries itself that should be made, particularly for c).

Ok these are items that cannot be directly allocated to any one job so they are allocated by finding a common denominator. In this case indirect materials $900 might be allocated on the basis of direct materials used and similarly indirect labour $ 600 might be allocated on the basis of direct labour used, As these are only part of factory overhead allocated to work in progress and you already know the amount of allocated factory overhead include these numbers in your allocation of materials used and labour input. Ie; part of your journal will refer to work in progress and part to factory overhead

So I expect that there will be a clearing account for factory overhead and you will allocate the expense by crediting that clearing account perhaps called factory overhead and debiting work in progress with sub allocations to each job