Operations related to the first quarter production


Phillips manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. The following data summarize the operations related to the first quarter's production.

1. Purchased additional raw materials of $90,000 on account.

2. Incurred factory labor costs of $65,000.

3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor $15,000; depreciation expense $19,000 and various other manufacturing overhead costs on account $20,000

4. Assigned direct materials labor and direct labor to jobs as follows.

Job Number Direct Materials Direct Labor
50 $10,000 $5,000
51 $39,000 $25,000
52 $30,000 $20,000

5. Manufacturing overhead rate is 65% of direct labor cost.

6. All jobs were completed during the quarter.

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Accounting Basics: Operations related to the first quarter production
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