1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vesnalui [34]
3 years ago
15

During the current month, a company that uses job order costing incurred a monthly factory payroll of $180,000. Of this amount,

$40,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions.
Business
2 answers:
Likurg_2 [28]3 years ago
8 0

Answer:

The necessary journal entries are:

Dr Factory work-in progress     $140,000

Dr Factory Overhead account   $40,000

Cr Factory wages payable                        $180,000

Explanation:

The $40,000 is an cost of labor, hence it is debited to factory overhead which is the account for indirect labor cost. Indirect labor in this sense refers to labor cost not directly traceable to the finished goods produced,the remaining balance of $140,000($180,000-$40,000) is debited to factory work in progress.

For every debit, there is corresponding credit,hence the entire $180,000 is credit to factory wages payable account pending when payment is made. Upon payment the account debited and a credit posted to cash account to indicate cash outflow.

shutvik [7]3 years ago
5 0

Answer:

Work in Process (Dr.)                     $140,000

Manufacturing overhead (Dr.)           40,000

                     Payroll / Salaries Payable                $180,000

Explanation:

Job order costing is a costing method used by the managerial accountants when the company produces different products and these products are not identical in-nature. An alternative to this method is Process costing which is used when a company produces homogenous products. In this case, the company has adopted job order costing because its products can be hetrogenous in-nature. Moreover, the company has incurred a Payroll cost of $180,000. $40,000 out of this amount is classified as indirect labor because the company is not able to trace it to a particular job and it will be treated as manufacturing overhead. This amount could have been paid to supervisors of factory or maintenance workers. The remaining amount of $140,000 is classified as direct labor because the management is in a better position to trace it to a particular job. This amount directly goes to Work-in-Process account.

You might have noticed that the indirect cost is kept in Manufacturing overhead account, whereas the direct labor cost is charged to Work-in-process account. This is because that at the start of a period, the management estimates the amount of manufacturing overhead (Indirect costs) and charge it to the work-in-process account. As the period goes on, the indirect costs are recorded in manufacturing overhead account when incurred, and at the end of period we compare the Actual manufacturing overhead with the expected (charged to Work-in-process) and make adjustments.

Thanks!

You might be interested in
The practice of subcontracting work to other people or companies is called
s2008m [1.1K]
A business practice where main contractor hires additional individuals or companies called subcontractors to help complete a project. The main contractor is still in charge and must oversee hires to ensure project is executed and completed as specified in contract.
3 0
3 years ago
Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2
Ad libitum [116K]

Answer:

Winnebago Industries' ending inventory have been if it had used FIFO is $77,196,000

Explanation:

The computation of the ending inventory under FIFO method is shown below:

= Ending inventory under LIFO inventory method  + LIFO reserve

= $46,850,000 + $30,346,000

= $77,196,000

For determining the ending inventory under the FIFO method, we added the ending inventory under the LIFO method and LIFO reserve so that accurate value can come.

7 0
3 years ago
Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $10,000 cash and business inventory ($20
kicyunya [14]

Answer:

1. Mr Boyd's share = 400, Ms Tuck = 800

2. Mr Boyd's realised gain = $16,800, recognized gain = $0, basis = $13200

Ms Tuck's realized gain = $18500, gain recognized = 0, basis = $41500

Explanation:

1.

Total share = $1200

Cash received from Mr Boyd = 10000

FMV from him = 20000

Total value = 30000

FMV of equipment from Ms Tuck = 60000

Total value from both of them = 60000 + 30000 = $90000

Number of share Mr Boyd is to receive = 1200x(30000/90000)

= 400

Number of share Ms Tuck is to receive

= 1200x(60000/90000)

= 800

2.

<u>Mr Boyd's gains</u>

Cash received = 10000

FMV = 20000

Total = 30000

Adjusted basis = 3200

Total tax basis = 10000+3200

Gain realized = 30000-13200

= 16800

Gain realized = 0 because it is a non taxable exchange.

Mr Boyd's realised gain = $16800, recognised gain = $0, basis = $13200

<u>Ms Tuck</u>

FMV = 60000

Adjusted tax basis = 41500

Gain realized = 60000-41500

= 18500

Gain recognized = 0(non taxable exchange)

Ms Tuck's realized gain = $18500, recognized gain = $0, basis = $41500

3

the FMV basis of inventory = 20000

carryover basis = 3200

equipment basis FMV = 60000

carryover basis = 41500

note that no gain if equal to or more than 80 percent of the ownership of the stock in a non taxable exchange.

6 0
3 years ago
If an individual investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock mark
sergejj [24]

Answer:

a. False

Explanation:

A "primary transaction" refers to the selling of <em>new stocks and bonds</em> for the first time towards the public. A great example of this is the "Initial Public Offering" <em>(IPO)</em> which allows "public share issuance."

On the other hand, a "secondary transaction" refers to the<em> trading of investors among themselves.</em> There is no involvement of the issuing companies here. So, this means that if an investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock market,<u> the transaction</u><u> doesn't directly involve the issuing compan</u><u>y.</u> This kind of transaction is then called "secondary."

So, this explains the answer.

8 0
3 years ago
Was Justice Antonin Scalia a conservative or liberal?
hjlf

QUESTION -

Was Justice Antonin Scalia a conservative or liberal?


ANSWER -

Antonin Scalia, (born March 11, 1936, Trenton, New Jersey, U.S.—died February 13, 2016, Shafter, Texas), associate justice of the Supreme Court of the United States from 1986 to 2016, well known for his strong legal conservatism. He was the first Supreme Court justice of Italian ancestry.


            <u>*******Antonin Scalia was a CONSERVATIVE*******</u>

8 0
3 years ago
Other questions:
  • The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pa
    8·1 answer
  • Help please!!!
    10·1 answer
  • On August 2, 2013, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account.
    6·1 answer
  • Which best describes the effect of outsourcing on the labor market in the United States
    7·1 answer
  • Murphy company has three departments, and uses a multiple predetermined overhead rate system. Department A manufactures parts in
    14·1 answer
  • Select the term in the blank space beside the definition that it most closely matches.
    9·1 answer
  • Đặc điểm cơ bản của tài chính gián tiếp là gì
    14·1 answer
  • The area of law that protects Coca-Cola® (with is accompanying ®) is
    12·1 answer
  • Select the behavior that does NOT represent an example of a speaker effectively preparing for a lecture.
    11·1 answer
  • the product life cycle (plc) defines the life of a product in four basic stages, which include .
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!