FOR 25 ASSIGNMENT POINTS.....Complete journal entry problem #3 below. Take special note of the beginning information at the top of the problem.
The work in process account has the following information already posted for the three jobs from the first week of work:
JOB 621 JOB 622 JOB 623
MATERIALS $2800 $3400 $1800
LABOR $2100 $2700 $1350
APPLIED F.O. $1680 $2160 $1080
__________________________________________________
TOTAL $6580 $8260 $4230
The following information is for the second week. Make all necessary entries.
a. Materials purchased and received, $22,000, terms n/45.
b. Materials requisitioned for production were $21,000. Of this amount $2400 were indirect and the rest was distributed as follows: JOB 621--$5300 JOB 622--$7400 JOB 623--$5900.
c. $600 of materials were returned to the storeroom. $200 was indirect and $400 was from JOB 622.
d. Materials returned to the vendor amounted to $800.
e. Gross payroll for the week was $60,000. Federal income tax withheld was $7000. Union dues were $500. FICA was withheld at the rate of 7.65%.
f.. The payroll was divided as follows:
direct labor.................55% {JOB 621--$6420, JOB 622--$8160, JOB 623--$18,420}
indirect labor..............20%
marketing salaries.......10%
admin. salaries............15%
g. Payroll taxes were recorded as follows: {13.85% is the total of the rates}
fut.............. .8%
sut.............. 5.4%
fica............ 7.65%
h. Factory overhead amounted to $5500. This included depreciation of $2000, $250 in expired insurance, and $3250 in unpaid bills. {hint.......no crediting expenses!}
i. Factory overhead was applied at the rate of 80% of the direct labor charges of letter "f". {don't forget to do it by the job}.
j. Jobs 621 and 622 were completed and transferred to finished goods. {this is a biggie...don't forget to add in the balances from last week!}
k. Both jobs were shipped and sold at a 40% profit {2 entries!}