Question

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $ 7,500 Job 34 6,000 $ 13,500 Source documents revealed the following during March: Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,500 $ 6,500 Completed and sold Job 34 6,000 7,800 Completed, but not sold Job 35 4,200 3,250 In process Indirect 1,300 2,140 $ 15,000 $ 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost.

Answer 1

Answer: Incomplete question. Here is the  question you omitted

Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1Record the issuance of raw materials to production.

2Record Oak Creek Furniture Factory’s payroll costs. Assume the direct labor is owed but not paid.

3Record the application of manufacturing overhead to production

4Compute the cost of Jobs 33, 34, and 35 at the end of the month.

5. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.

Please see below for answers.

Explanation:Work in Process Balance on 3/1

                    Job 33                  $ 7,500  

                      Job 34               $ 6,000

                                                 $13,500

Materials Requisitions Forms  labourTickets Status of Job at Month-End

job 33   $ 3,500                         $ 6,500   Completed and sold

Job 34   6,000                            7,800  Completed, but not sold

Job 35 4,200                               3,250                  In process

Indirect 1,300                                 2,140

         $ 15,000                             $ 19,690                      

1)Journal to Record the issuance of raw materials to production.

Account                                                               Debit           Credit

work in progress inventory (15,000- 1300)   13,700

Manufacturing overhead                                    1,300

Raw material inventory                                                      $15,000

2)Journal to Record the Payroll costs

Account                                                               Debit           Credit

work in progress inventory (19,690- 2, 140)   17,550

Manufacturing overhead                                    2,140

wages payable                                                                   $19, 690

3)Journal to Record application of manufacturing overhead to production

Account                                                               Debit           Credit

work in progress inventory (17,550 x 150 %)  $26,325

Manufacturing overhead                                                  $26,325

4) Compute the cost of Jobs 33, 34, and 35 at the end of the month.

                                   job 33           job 34        job 35

opening cost--             7500            6000               0

material cost--               3500         6000            4200

labour cost--                  6500          7800            3250

overhead cost

at 150% labour cost        9750          11,700       4875

total                         $27,250           $31,500    $12,325

5)Calculate the balance

Work in Process Inventory= job 35 since work in progress=$12,325

Finished Goods Inventory= job 34 since Completed, but not sold=$31,500

and Cost of Goods Sold = job 33  Completed, and sold =  $27,250