Question

Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 11-101 $6,240 Job 11-102 9,000 Job 11-103 7,210 Job 11-104 6,750 Factory supervision 4,000 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour. a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

Answer 1

Answer:

See the attached picture for answer.

Explanation:

See the attached picture for explanation.

Answer 2

Answer:

Journal Entries                                             Debit ($)                 Credit ($)

(1) Work in process (W1)                                 29,200

    Factory overheads                                     4,000

    Wages payable                                                                         33,200

    Recording to factory labor cost

(2) Work in process (W2)                                13,140

    Factory overheads                                                                     13,140

    Recording the application of factory overheads to production

Working:

(W1) Work in process = $6,240 + $9,000 + $7,210 + $6,750 = $29,200

(W2) Work in process = ($29,200 / $40) x $18 = $13,140