Question:
Entries with Overhead Subsidiary Ledger. The general ledger of the Dole- Johnson Company contains a factory overhead control account supported by a subsidiary ledger showing the details by departments. The plant is departmentalized with one service and three producing departments.
The following table shows details with respect to these departments:
|
Machining
|
Painting
|
Assembly
|
General
|
|
Dept.
|
Dept.
|
Dept.
|
Factory
|
|
Building space (sq. ft.)
|
10,000
|
4,000
|
4,000
|
2,000
|
|
Value of machinery
|
$30,000
|
$10,000
|
$6,000
|
$2,000
|
|
Horsepower rating
|
100
|
0
|
10
|
15
|
|
Compensation insurance rate (per $100)
|
$1.50
|
$1.50
|
$1.00
|
$1.00
|
During January, certain assets expired and some liabilities accrued as outlined below:
(a) Depreciation on buildings, 3% per year; cost, $60,000.
(b) Depreciation on machinery based on 10-year life; machinery cost, $48,000.
(c) Taxes for the year ending December 31 are estimated to be $ 1 ,200, of which 60% is on buildings and 40% on machinery.
(d) Fire insurance in the amount of $100,000 is carried on buildings and machinery, and the rate is $.60 per $100 of coverage. Sixty percent of this insurance applies to buildings. The prepaid fire insurance account shows a balance of $300 at January 31 before adjustment.
(e) Compensation insurance is based on the following earnings of factory employees for the month of January : Machining Department, $3,000 ; Painting Department, $1,200; Assembly Department, $1,600; and General Factory, $600.
(f) Power meter reading at January 31 shows 12,500 kilowatt-hours consumed.Rate is $.03 per kilowatt-hour.
(g) Heat and light bill for the month of January is $300.
(h) Supplies requisitions show $180 used in the Machining Department, $230 in the Assembly Department, and $410 in the General Factory Department. Required: Journal entries with details entered in the factory overhead subsidiary ledger.