Question

Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:

Job 11-101 $3,880
Job 11-102 2,630
Job 11-103 2,080
Job 11-104 3,190
Job 11-105 2,080
Factory supervision 1,800 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $22 per direct labor hour. The direct labor rate is $18 per hour.
Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

Answer 1

Step-by-step explanation:

Job 11-101=$3,880

Job 11-102= $2,630

Job 11-103= $2,080

Job 11-104= $3,190

Job 11-105= $2,080

Total 13,860

Direct labor rate = $18

Predetermined overhead rate = $22

Direct labor hour = 13,860/18 = 770 hours

Applied factory overhead rate = 770 *22 = $16,940

Factory labor cost

Dr Cr

Work in progress 13,860

Factory Overhead 18,000

Wages payable 31,860

Factory Overhead

Work in progress 16,940

Factory overhead 16,940