Question

Entries for a Job Order Cost System The Houston Company uses a job order cost system. The following relate to the year of 20X4: R materials issued to productions. Job No.101 $2, 000 Job No.102 5, 000 Job No.103 6, 000 Direct labor incurred; Job No.101 1, 000 hours $1, 500 Job No. 102 2, 000 hours 4, 000 Job No.103 3, 000 hours 3, 600 Factory overhead is applied to production on the of $2 per direct labor hour. Total factory overhead incurred was $24, 000. Job No.101 and No.102 were completed during the year. Job No.101 was sold for $ 7, 500. a. Prepare the journal entries required to record the above information. (Allocate any over – or under applied overhead to week in process, finished goods, and cost of goods sold based on their total overhead applied.) b. Determine the beginning inventory of week in process at January 1, 20X5.