What are the proper steps to solve the following requirements?
What are the proper steps to solve the following requirements? What are the best-recommended answers?
Wilcon Industries Corp. estimated that factory overhead figures should be charged at the rate of $250 per direct labor hour. The desired gross profit is 33.33% of the selling price. The jobs worked on in January and February and the corresponding direct charges are as follows:
January:
Job Order No. 01: 2500 Narra chairs for Wesley
Ordered on January 5 and needed on February 10
Date Started: January 7
Date Finished: February 8
Job Order No. 02: 100 Mahogany bar stools for Sharpie
Ordered on January 8 and needed on January 30
Date Started: January 10
Date Finished: January 26
February:
Job Order No. 03: 100 Narra sala sets for HP Inc.
Ordered on February 10 and needed on March 20
Date Started: February 12
Job Order No. 04: 50 Mahogany and Narra beds for Kian Furniture
Ordered on February 15 and needed on March 31
Started: February 16
Direct Materials Issued:
Date
Job Order No.
Amount
January 7
01
$120,000
January 10
02
$60,000
January 12
01
$80,000
January 26
02
$30,000
Date
Job Order No.
Amount
February 5
01
$55,000
February 12
03
$155,000
February 16
04
$82,000
February 21
04
$26,000
February 28
03
$58,000
Direct Labor costs per time tickets:
Date
Job Order No.
Labor Hours
Amount
January 6-11
01
500
$18,000
02
300
$12,000
January 13-19
01
1,000
$30,000
02
1,200
$46,000
January 20-26
01
800
$27,000
02
2,000
$38,000
January 27-28
01
500
$16,000
Date
Job Order No.
Labor Hours
Amount
February 3-9
01
1,200
$41,000
February 10-16
03
2,100
$40,500
04
100
$4,000
February 17-23
03
1,600
$58,000
04
1,200
$43,000
February 24-28
03
700
$25,000
04
550
$19,500
Solve for the following:
1. Cost Sheets
2. Necessary Journal Entries
3. T-Accounts for Work in process for January and February
4. Proof of Work in process inventory, January 31
5. Statement of cost of goods manufactured for February (Supported by Job Order Cost)
Proof of Work in Process inventory, February 28
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