Figure 5-14 Deluxe Design Company makes custom furniture. On December 1, there were two jobs...
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Accounting
Figure 5-14 Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:
Job #683
Job #684
Job #685
Job #686
Job #687
Direct materials
$11,000
$8,000
$31,400
$16,700
$6,000
Direct labor
$21,000
$6,000
$12,300
$8,450
$2,500
Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process.
Problem 5-23
Refer to Figure 5-14.
Prepare the journal entries to record the following:
The actual overhead for December was $41,100
Requisitioning of raw materials
Direct labor costs
Applied overhead
Transfer to finished goods
Sale of finished goods (assume sale was made on account)
Closing underapplied/overapplied variance (all variances are immaterial)
A
B
C
D
E-cost
E-sale
F
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