Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,400 of indirect materials and $13,700 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
| Job 301 |
| Direct materials | $10,100 |
| Direct labor | 8,500 |
| Factory overhead | 5,950 |
| Total | $24,550 |
| Job 302 |
| Direct materials | $19,000 |
| Direct labor | 16,200 |
| Factory overhead | 11,340 |
| Total | $46,540 |
| Job 303 |
| Direct materials | $23,700 |
| Direct labor | 16,300 |
| Factory overhead | — |
| Job 304 |
| Direct materials | $12,700 |
| Direct labor | 11,800 |
| Factory overhead | — |
Required:
Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.| A. Direct and indirect materials used. | | B. Direct and indirect labor used. | | C. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). | | D. Completion of Jobs 301 and 302. |
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| CHART OF ACCOUNTS |
| Old School Publishing Inc. |
| General Ledger |
| ASSETS | | 110 | Cash | | 121 | Accounts Receivable | | 125 | Notes Receivable | | 126 | Interest Receivable | | 131 | Materials | | 132 | Work in Process | | 133 | Factory Overhead | | 134 | Finished Goods | | 141 | Supplies | | 142 | Prepaid Insurance | | 143 | Prepaid Expenses | | 181 | Land | | 191 | Factory | | 192 | Accumulated Depreciation-Factory |
| LIABILITIES | | 210 | Accounts Payable | | 221 | Utilities Payable | | 231 | Notes Payable | | 236 | Interest Payable | | 241 | Lease Payable | | 251 | Wages Payable | | 252 | Consultant Fees Payable |
| EQUITY | | 311 | Common Stock | | 340 | Retained Earnings | | 351 | Dividends | | 390 | Income Summary |
| | REVENUE | | 410 | Sales | | 610 | Interest Revenue |
| EXPENSES | | 510 | Cost of Goods Sold | | 520 | Wages Expense | | 531 | Selling Expenses | | 532 | Insurance Expense | | 533 | Utilities Expense | | 534 | Office Supplies Expense | | 540 | Administrative Expenses | | 560 | Depreciation Expense-Factory | | 590 | Miscellaneous Expense | | 710 | Interest Expense |
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Solution: ACC 210-Old School Publishing Inc. began printing operations on January 1