Morgan Enterprises Uses a Job Costing System

question 267

Essay

Morgan Enterprises uses a job costing system. Record the following transactions in Morgan Enterprises' general journal for the current month:

a) Purchased raw materials on account, $60,000.
b) Requisitioned $35,600 of direct materials and $5,600 of indirect materials for use in production.
c) Factory payroll incurred, $72,000; 80% direct labour, 20% indirect labour.
d) Recorded depreciation expense factory equipment $9,600, and other manufacturing overhead of $33,680 (credit accounts payable).
e) Allocated manufacturing overhead costs based on 120% of direct labour cost.
f) Cost of completed production for the current month, $113,600.
g) Cost of finished goods sold, $92,000; selling price, $140,000 (all sales on account).

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Definitions:

Side Effects

Unintended, but fairly mild and common, effects of a medication.

Intravenously

The method of administering medication or fluids directly into a vein.

Injected

refers to the introduction of a substance into the body through a needle and syringe.

Vein

Blood vessels that carry blood towards the heart, typically containing valves to prevent backflow.