Job Order Cost System-Journal Entries

question 49

Essay

Job order cost system-journal entries
Paxton Products,which uses a job order cost system,completed the following transactions during the current month:
(A)Materials costing $75,000 were used on various jobs.
(B)Time cards of direct workers indicate direct labor costs of $125,000 for the month.
(C)Overhead is applied to jobs at a rate of 75% of direct labor cost.
(D)Jobs with total accumulated costs of $165,000 were finished during the month.
(E)Units costing $210,000 were sold during the month at sales prices totaling $390,000.All sales were on account.
In the space provided,prepare a general journal entry for the month summarizing each of the above categories of transactions.Explanations may be omitted.

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Definitions:

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Return On Equity

A financial ratio indicating the profitability of a company in relation to shareholders' equity, showing how effectively a company uses investments to generate earnings growth.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial position.

Income Statement

A statement that outlines the financial activities, including incoming revenue, outgoing expenses, and total net profit, of an organization within a specific time.