Ive been stuck on this problem for close to a week. I have put the job sheets together but need help figuring out how to prepare the journal entries to record the events and transactions.

Not sure on how to do these: (just explaining what they mean or kind of account would be very helpful too.)

a. materials requisitions record use of following materials:
Job 1 : 30,000
Job 2 : 20,000
Job 3 : 12,000
Job 4 : 14,000
Job 5 : 4,000
Total mats : 80,000 Indirect mats : 12,000
Total mats used: 92,000

b. time tickets record use of the following labor:
Job 1 : 8,000
Job 2 : 7,000
Job 3 : 25,000
Job 4 : 26,000
Job 5 : 2,000
Total labors : 68,000 Indirect labor : 16,000
Total mats used: 84,000

c. allocated overhead to jobs 1, 3 and 4 (no idea what this means)
d. transferred jobs to 1, 3, and4 to finished goods.
-thinking this means to debit finished goods but not sure what amount.

Please help with this. I have more "events" but these are the only ones I don't get.

Quote:

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Originally Posted by trca4596

Ive been stuck on this problem for close to a week. I have put the job sheets together but need help figuring out how to prepare the journal entries to record the events and transactions.

Not sure on how to do these: (just explaining what they mean or kind of account would be very helpful too.)

a. materials requisitions record use of following materials:
job 1 : 30,000
job 2 : 20,000
job 3 : 12,000
job 4 : 14,000
job 5 : 4,000
total mats : 80,000 Indirect mats : 12,000
total mats used: 92,000

b. time tickets record use of the following labor:
job 1 : 8,000
job 2 : 7,000
job 3 : 25,000
job 4 : 26,000
job 5 : 2,000
total labors : 68,000 Indirect labor : 16,000
total mats used: 84,000

c. allocated overhead to jobs 1, 3 and 4 (no idea what this means)
d. transferred jobs to 1, 3, and4 to finished goods.
-thinking this means to debit finished goods but not sure what amount.

Please help with this. I have more "events" but these are the only ones i dont get.

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materials are usually contained in a materials inventory so credit inventory and debit work in progress

Labour has been paid for in the payroll usually there will be clearing account so debit work in progress and credit payroll clearing

Overhead is allocated by way of a percentage or other allocation mechanism
debit work in progress credit overhead recovered. As you are not given any values... you cannot include it unless they are referring to the indirect materials and labour

you will have to develop an allocation mechanism for the indirect labour and materials yourself, simple percentage is usual

credit work in progress debit finished goods inventory

I leave you to fill in the numbers

Thank you so much! I will fill in the numbers :) I just needed some help with the "where to put things" parts.