Question

On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Materials: Standard Qty. Standard Cost Oats 525 pounds $1.25 per pound Wheat 450 pounds $1.15 per pound Barley 85 pounds $1.45 per pound Malt 65 pounds $2.15 per pound Honey 25 quarts $1.20 per quart Water 25 gallons $0.45 per gallon Time: Miller 4.5 hours $22.75 per hour Loader 1.5 hours $11.50 per hour ​ Overhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix. a. Journalize the entry for the transfer of raw materials to Job 111407A. b. Journalize the entry for the direct labor incurred for Job 111407A. c. Journalize the entry for the manufacturing overhead applied to Job 111407A. d. Journalize the entry for the transfer of Job 111407A to Finished Goods on November 14.

Answer 1

Journal entries for Job 111407A: raw materials, direct labor, overhead, and finished goods transfer recorded.

Job Costing Journal Entries for Job 111407A

a. Journal Entry for Transfer of Raw Materials:

Debit: Work in Process Inventory - Job 111407A

Credit: Raw Materials Inventory

| Account | Debit | Credit |

| Work in Process Inventory - Job 111407A | $1,806.65 | |

| Raw Materials Inventory | | $1,806.65 |

Calculation:

• Oats: 525 lbs x $1.25/lb = $656.25
• Wheat: 450 lbs x $1.15/lb = $517.50
• Barley: 85 lbs x $1.45/lb = $122.75
• Malt: 65 lbs x $2.15/lb = $139.75
• Honey: 25 qts x $1.20/qt = $30.00
• Water: 25 gals x $0.45/gal = $11.25
• Total Material Cost = $1,806.65

b. Journal Entry for Direct Labor:

Debit: Work in Process Inventory - Job 111407A

Credit: Wages Payable

| Account | Debit | Credit |

| Work in Process Inventory - Job 111407A | $126.38 | |

| Wages Payable | | $126.38 |

Calculation:

• Miller: 4.5 hrs x $22.75/hr = $102.38
• Loader: 1.5 hrs x $11.50/hr = $24.00
• Total Direct Labor Cost = $126.38

c. Journal Entry for Manufacturing Overhead Applied:

Debit: Work in Process Inventory - Job 111407A

Credit: Manufacturing Overhead

| Account | Debit | Credit |

| Work in Process Inventory - Job 111407A | $5,867.88 | |

| Manufacturing Overhead | | $5,867.88 |

Calculation:

• Overhead Rate x Actual Pounds Produced = $5.75/lb x 1,025 lbs = $5,867.88

d. Journal Entry for Transfer of Job 111407A to Finished Goods:

Debit: Finished Goods Inventory

Credit: Work in Process Inventory - Job 111407A

| Account | Debit | Credit |

| Finished Goods Inventory | $7,699.91 | |

| Work in Process Inventory - Job 111407A | | $7,699.91 |

Calculation:

• Material Cost + Direct Labor Cost + Overhead Cost = $1,806.65 + $126.38 + $5,867.88 = $7,699.91