Reference no: EM132768063
Question - Entries for Materials - Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows:
Fabric $29,600
Polyester filling 8,900
Lumber 66,300
Glue 2,800
The materials purchased during April on account are summarized from the receiving reports as follows:
Fabric $142,700
Polyester filling 198,400
Lumber 391,000
Glue 13,600
Materials were requisitioned to individual jobs as follows:
Fabric Polyester Filling Lumber Glue Total
$52,800 $66,500 $177,900 $297,200
40,700 $72,300 $155,800 268,800
37,500 49,100 86,600 173,200
Factory overhead indirect materials $6,900 6,900
$131,000 $187,900 $420,300 $6,900 $746,100
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
Required -
a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank.
c. Determine the April 30 balances that would be shown in the materials ledger accounts.
Factory Overhead Rates, Entries, and Account Balance
Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:
Factory 1 Factory 2
Estimated factory overhead cost for fiscal year beginning August $558,600 $554,400
Estimated direct labor hours for year 9,900
Estimated machine hours for year 18,620
Actual factory overhead costs for August $44,590 $47,850
Actual direct labor hours for August 890
Actual machine hours for August 1,450
a. Determine the factory overhead rate for Factory 1.
b. Determine the factory overhead rate for Factory 2.