Kim, a nine-year-old, has lived with her grandmother since she was three years of age, at which time her father had abandoned the family and her mother had been sent….
Make all journal entries in the normal costing system for the period, and post them to t-accounts.
Jackson Company uses job costing, and applies overhead to jobs at a rate of $12 per direct labor hour. Beginning inventories were $15,000 in raw materials, $260,000 in work-in-process, and $150,000 in finished goods. This year, Jackson purchased 10,000 pounds of direct materials at $40 per pound and $80,000 in indirect materials on account. Jackson used 9,500 pounds of direct materials and $85,000 in indirect materials. Direct labor worked 35,000 hours and indirect labor worked 7,500 hours. All labor was paid $10 per hour, in cash. Through the year, Jackson incurred $90,000 for factory rent, and $35,000 in miscellaneous manufacturing overhead, all paid in cash, and recorded $80,000 in factory equipment depreciation. During the year, Jackson completed goods costing $1,160,000, $100,000 of which was spoilage normal for the production process, and $60,000 of which was abnormal spoilage. Jackson also incurred normal rework costs of $25,000 and abnormal rework costs of $30,000, paid in cash. Goods costing $950,000 were sold. Jackson incurred administrative expenses of $50,000 and selling expenses of $30,000, both paid in cash, and recorded $18,000 in office equipment depreciation. Make all journal entries in the normal costing system for the period, and post them to t-accounts.