Figure 5-14
Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process.
-Refer to Figure 5-14.
Prepare the journal entries to record the following:
A.) Requisitioning of raw materials
B.) Direct labor costs
C.) Applied overhead
D.) Transfer to finished goods
E.) Sale of finished goods (assume sale was made on account)
F.) Closing underapplied/overapplied variance (all variances are immaterial)

Question

Figure 5-14
Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:
  Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process.
-Refer to Figure 5-14.
Prepare the journal entries to record the following:
A.) Requisitioning of raw materials
B.) Direct labor costs
C.) Applied overhead
D.) Transfer to finished goods
E.) Sale of finished goods (assume sale was made on account)
F.) Closing underapplied/overapplied variance (all variances are immaterial)

Quizplus · Accepted Answer

The Answer of Figure 5-14
Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:
  Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process.
-Refer to Figure 5-14.
Prepare the journal entries to record the following:
A.) Requisitioning of raw materials
B.) Direct labor costs
C.) Applied overhead
D.) Transfer to finished goods
E.) Sale of finished goods (assume sale was made on account)
F.) Closing underapplied/overapplied variance (all variances are immaterial)

Figure 5-14 Deluxe Design Company Makes Custom Furniture. on December 1, There