Indell Corporation uses a job costing system. Record the following transactions in Indell Corporation's general journal for the current month:
a. Purchased raw materials on account, $24,000.
b. Requisitioned $36,900 of direct materials and $7,200 of indirect materials for use in production.
c. Factory payroll incurred, $68,000; 70% direct labour, 30% indirect labour.
d. Recorded depreciation expense factory equipment $11,500, and other manufacturing overhead of $31,570 (credit accounts payable).
e. Allocated manufacturing overhead costs based on 120% of direct labour cost.
f. Cost of completed production for the current month, $103,000.
g. Cost of finished goods sold, $81,000; selling price, $125,000 (all sales on account).

Question

Quizplus · Accepted Answer

The Answer of Indell Corporation uses a job costing system. Record the following transactions in Indell Corporation's general journal for the current month:
a. Purchased raw materials on account, $24,000.
b. Requisitioned $36,900 of direct materials and $7,200 of indirect materials for use in production.
c. Factory payroll incurred, $68,000; 70% direct labour, 30% indirect labour.
d. Recorded depreciation expense factory equipment $11,500, and other manufacturing overhead of $31,570 (credit accounts payable).
e. Allocated manufacturing overhead costs based on 120% of direct labour cost.
f. Cost of completed production for the current month, $103,000.
g. Cost of finished goods sold, $81,000; selling price, $125,000 (all sales on account).

Indell Corporation Uses a Job Costing System