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Provide journal entries to record the events listed above for October 2009 (10 MARKS)

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Quality Boxes manufactures fine, handcrafted wooden jewellery boxes. The firm uses a job costing system, and manufacturing overhead is applied on the basis of direct labour hours.;Estimated manufacturing overhead for the current year is $240 000. The firm employs 10 carpenters, who are regarded as direct labour. Each of these employees is expected to work 2000 hours during the year.;At the beginning of October 2009 the inventory balances were as follows;? Raw material: 5000 metres of wood at $11 per metre, $55 000.;? Work in process job number G60 $3700 consisting of direct material $500 direct labour $2000 and manufacturing overhead $1200.;? Finished goods: job number B50, $12 000.;The following events occurred during October 2009;(a) The firm purchased 3000 metres of wood at $11 per metre.;(b) The following raw materials were transferred to production;? job number G60: 1000 metres of wood;? job number C81: 5000 metres of wood;(c) Five litres of glue were purchased in October and issued to production. The glue cost $20 per litre. Glue is treated as an indirect material.;(d) Depreciation on the factory equipment for October was $8000.;(e) $400 electricity bill for the manufacturing plant was paid in cash.;(f) Time sheets showed the following use of labour;? job number G60: 100 hours of direct labour;? job number C81: 700 hours of direct labour;The carpenters (direct labour) earn $20 per hour.;(g) The October council rates bill for the manufacturing plant of $910 was received but not yet paid in cash.;(h) The firm employs labourers who perform various tasks such as material handling and shop clean-up. Their wages for October amounted to $2500.;(i) Job number G60, which was started in July, was finished in October. Job number C81 was incomplete at the end of October.;(j) Job number B50 was sold in October for $15,000.;REQUIRED;1. Provide journal entries to record the events listed above for October 2009 (10 MARKS);2. Post journal entries to the following inventory ledger accounts;(a) raw material;(b) work in process;(c) finished goods;and determine closing balances. (3 MARKS);3. Prepare a job cost card for job number G60. (2 MARKS)

 

Paper#27197 | Written in 18-Jul-2015

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