Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 57

King Company produces variations of its product, a megatron, in response to custom orders from its customers. On June 1, the company had no inventories of work in process or finished goods but held the following raw materials.

Instructions: Record direct labor from the time tickets on the job cost sheets. Do not record a journal entry at this time.
d. Paid cash for the following items during the month: factory payroll, $84,000, and miscellaneous overhead items, $36,800. Use the time tickets to record the total direct and indirect labor costs. Instructions: Record these payments with journal entries.
e. Finished Job 450 and transferred it to the warehouse. The company assigns overhead to each job with
a predetermined overhead rate equal to 70% of direct labor cost. Instructions: Enter the allocated overhead on the cost sheet for Job 450, fill in the cost summary section of the cost sheet, and then mark the cost sheet "Finished." Prepare a journal entry to record the job's completion and its transfer to Finished Goods.
f. Delivered Job 450 and accepted the customer's promise to pay $290,000 within 30 days. Instructions: Prepare journal entries to record the sale of Job 450 and the cost of goods sold.
g. Applied overhead cost to Job 451 based on the job's direct labor used to date. Instructions: Enter overhead on the job cost sheet but do not make a journal entry at this time.
h. Recorded the total direct and indirect materials costs as reported on all the requisitions for the month. Instructions: Prepare a journal entry to record these.
i. Recorded the total overhead costs applied to jobs. Instructions: Prepare a journal entry to record the allocation of these overhead costs.
j. Compute the balance in the Factory Overhead account as of the end of June.