Man I am soooo tired of ppl calling me!!! I am soliciting the help of my good friends here!!! LUV YA!!! My friend contacted me with this question...
Question 1
Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19,831, direct labor $11,700, and manufacturing overhead $15,138. As of January 1, Job No. 49 had been completed at a cost of $89,434 and was part of finished goods inventory. There was a $14,205 balance in the Raw Materials Inventory account.
During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,631 and $157,084, respectively. The following additional events occurred during the month.
Purchased additional raw materials of $90,106 on account.
Incurred factory labor costs of $64,976. Of this amount $15,966 related to employer payroll taxes.
Incurred manufacturing overhead costs as follows: indirect materials $16,146; indirect labor $14,080; depreciation expense $18,186, and various other manufacturing overhead costs on account $19,639.
Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,061 $ 4,161
51 39,920 25,170
52 30,701 24,520
what i need to know is what the crap do I credit for my moh costs. Indirect labor and indirect materials are not in the drop down menu and my brain is fried from studying for the cpa last year...any guesses would help... the available choices are
wip, taxes payable, depr expense, factory wages payable (which i used to record factory labor costs), moh, A/D, wages expense, f/g inventory, sales, cash, A/P, raw material inv(which i used to record the purch of raw materials), and factory labor.
I am thinking
dr MOH
cr a/p, depr exp, raw materials, and factory labor
but i could be wrong please help me thank you!!!
REG - 80; FAR - 65,79; AUD - 53,78; BEC - 71,68, 75 (used becker and yaeger for 3rd BEC)Ethics 95
I'M GONNA CELEBRATE AND LIVE MY LIFE SAYING AYE OH BABY LETS GO!!!!!
