Pine Valley Catering uses a job order cost system. The followingdata summarize the operations...

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Accounting

Pine Valley Catering uses a job order cost system. The followingdata summarize the operations related to the month of October, thefirst month of operations:
Materials purchased for $10,000 in cash.
Material requisitioned and labor used:
Job Number
Materials
Direct Labor
100
$1,500
$4,000
101
400
1,800
102
1,000
2,100
103
200
400
General Factory use
1,400
1,300
Factory overhead cost incurred in cash, $1,050
Depreciation of machinery, $700
Factory overhead applied at a rate of 50% of direct laborcosts
Jobs completed: Nos. 100, 101, and 102
Jobs 100, and 101, were billed to customers at $6,000 and $3,000respectively.
Adjust the Cost of Goods Sold Account for the under-or-overapplied overhead.
Please show in details how do you Journalize the abovetransactions.

Answer & Explanation Solved by verified expert

4.4 Ratings (870 Votes)

		DR	CR
1	Inventory	10000
	Cash		10000


2	Work in Progress	3100
	Manufacturing Overhead	1400
	Inventory		4500

3	Work in Progress	8300
	Manufacturing Overhead	1300
	Cash		9600


4	Manufacturing Overhead	1050
	Cash		1050

5	Manufacturing Overhead	700
	Accumulated Depreciation		700

6	Work in Progress	4150
	Manufacturing Overhead		4150
	(50% *8300of Direct labor Cost)

7	Finished goods	14750
	Work in Progress		14750

8	Cost of good sold	300
	Manufacturing Overhead		300
	(Opverhead Under Applied)

9	Account receivable	9000
	Sales		9000

10	Cost of good sold	10600
	Finished goods		10600

Job Number	100	101	102	Total
Materials	$ 1,500.00	$ 400.00	$ 1,000.00	$ 2,900.00
Direct Labor	$ 4,000.00	$ 1,800.00	$ 2,100.00	$ 7,900.00
Overhead	$ 2,000.00	$ 900.00	$ 1,050.00	$ 3,950.00
Cost of Finshed goods	$ 7,500.00	$ 3,100.00	$ 4,150.00	$ 14,750.00

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In: AccountingPine Valley Catering uses a job order cost system. The followingdata summarize the operations related...Pine Valley Catering uses a job order cost system. The followingdata summarize the operations related to the month of October, thefirst month of operations:Materials purchased for $10,000 in cash.Material requisitioned and labor used:Job NumberMaterialsDirect Labor100$1,500$4,0001014001,8001021,0002,100103200400General Factory use1,4001,300Factory overhead cost incurred in cash, $1,050Depreciation of machinery, $700Factory overhead applied at a rate of 50% of direct laborcostsJobs completed: Nos. 100, 101, and 102Jobs 100, and 101, were billed to customers at $6,000 and $3,000respectively.Adjust the Cost of Goods Sold Account for the under-or-overapplied overhead.Please show in details how do you Journalize the abovetransactions.