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aaivey9815
aaivey9815
17.02.2020 • 
Business

Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

1. Direct materials requisitioned during the month:

Job 101 $20,000
Job 102 16,000
Job 103 24,000
$60,000

2. Direct labor incurred and charged to jobs during the month was:

Job 101 $30,000
Job 102 28,000
Job 103 20,000
$78,000

3. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labor costs.
4. Actual manufacturing overhead costs incurred during the month amounted to $66,000.
5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month.

Prepare journal entries to record the above transactions.

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