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).