MBA 500-Assignment 1 (Due Week 6-09/20/21)
ABC Company is a manufacturer that uses a job order cost system.
The following data summarize the operations related to production for January, the first
month of operations:
a. Purchased 400 units of materials at $14 per unit on account.
b. Requisitioned materials for production as follow:
200 units for Job 101 at $12 per unit.
300 units for Job 102 at $14 per unit.
c. Accumulated direct labor cost as follows:
700 hours of direct labor on Job 101 at $16 per hour.
600 hours of direct labor on Job 102 at $12 per hour.
d. Incurred factory overhead costs as follows: indirect materials, $800; indirect
labor, $3,400; utilities cost, $1,600; and factory depreciation, $2,500.
e.Journalize the entries to record these transactions. (Fill in the blank below.)
***Show your calculation on the next page.
Date Accounts Debit Credit
b. Work in process
c. Work in process
d. Factory overhead