Printing Company uses a job order costing system

Accounting Oct 15, 2020

Printing Company uses a job order costing system. The following data summarizes the operations for the first quarter of the year.

a. Materials purchased on account $250,000 and manufacturing wages incurred $95,000.

b. Materials requisitioned and factory labor used by job( Prepare separate entries for issuance of material and distribution of payroll):

Job Number Materials Labor A20 $50000 $20000 A21 75000 30000 A22 25000 10,000 A23 60000 25,000 General Use (Indirect) 5000 10000 Totals $215,000 $95000

c. Manufacturing Overhead costs incurred on account = $55,500.

d. Depreciation on Equipment = $20000.

e. Predetermined Overhead Rate = 70% of direct labor cost.

f. Jobs completed during the quarter: A20, A21, and A23.

g. Job sold during the quarter : A 20 and A 23.

Question:

Prepare journal entries to record all events described above. (with respect to the subsidiary entries).

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