Journal Entries needed. Please show all work in Excel cells 😀 Thank you. Need by tomorrow at 5 pm.
Information from the work in process account already posted from the first week is listed below.
JOB 001 JOB 002 JOB 003
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.
1. Materials purchased and received, $20,000, terms n/45.
2. Materials requisitioned for production were $21,000. Of this amount $2400 were indirect and the rest was distributed as follows: JOB 001–$5300 JOB 002–$7400 JOB 003–$5900.
3. $600 of materials were returned to the storeroom. $100 was indirect and $500 was from JOB 002.
4. Materials returned to the vendor amounted to $600.
5. 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%.
6. The payroll was divided as follows:
direct labor……………..55% {JOB 001–$6420, JOB 002–$8160, JOB 003–$18,420}
indirect labor…………..20%
marketing salaries…….10%
admin. salaries…………15%
7. Payroll taxes were recorded as follows: {11.95% is the total of the rates}
fut………….. .9%
sut………….. 4.4%
fica………… 6.65%
8. Factory overhead amounted to $5500. This included depreciation of $2000, $250 in expired insurance, and $3250 in unpaid bills. (Do not credit expenses)
9. 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)
10. Jobs 001 and 002 were completed and transferred to finished goods. (Don’t forget to add in the balances from last week)
11. Both jobs were shipped and sold at a 35% profit (make 2 entries)
