The following information was taken from the job cost sheet for Job 101 for McDonald Manufacturing Company:
Date started: December 5, 2016
Date completed: January 21, 2017
Job 101 was sold on account on January 25, 2017, for 160 percent of its cost. Factory overhead is applied on the basis of direct labor costs.
Required:
a. Prepare the journal entries to record the costs incurred for Job 101 in 2016-2017 for direct materials, direct labor, and factory overhead.
b. Prepare the journal entry to record the completion of Job 101.
c. What is the predetermined factory overhead rate for McDonald Manufacturing?
d. Prepare the journal entries to record the sale of Job 101.

Question

The following information was taken from the job cost sheet for Job 101 for McDonald Manufacturing Company:
Date started: December 5, 2016
Date completed: January 21, 2017
  Job 101 was sold on account on January 25, 2017, for 160 percent of its cost. Factory overhead is applied on the basis of direct labor costs.
Required: 
a. Prepare the journal entries to record the costs incurred for Job 101 in 2016-2017 for direct materials, direct labor, and factory overhead.
b. Prepare the journal entry to record the completion of Job 101.
c. What is the predetermined factory overhead rate for McDonald Manufacturing?
d. Prepare the journal entries to record the sale of Job 101.

Quizplus · Accepted Answer

The Answer of The following information was taken from the job cost sheet for Job 101 for McDonald Manufacturing Company:
Date started: December 5, 2016
Date completed: January 21, 2017
  Job 101 was sold on account on January 25, 2017, for 160 percent of its cost. Factory overhead is applied on the basis of direct labor costs.
Required: 
a. Prepare the journal entries to record the costs incurred for Job 101 in 2016-2017 for direct materials, direct labor, and factory overhead.
b. Prepare the journal entry to record the completion of Job 101.
c. What is the predetermined factory overhead rate for McDonald Manufacturing?
d. Prepare the journal entries to record the sale of Job 101.

The Following Information Was Taken from the Job Cost Sheet