ACC 560 MART Extraordinary Success/acc560mart.com ACC 560 MART Extraordinary Success/acc560mart.com | Page 8

3. Factory labor costs incurred were $59,900, of which $51,000
pertained to factory wages payable and $8,900 pertained to employer
payroll taxes payable.
4. Time tickets indicated that $54,000 was direct labor and $5,900 was
indirect labor.
5. Manufacturing overhead costs incurred on account were $80,500.
6. Depreciation on the company's office building was $8,100.
7. Manufacturing overhead was applied at the rate of 150% of direct
labor cost.
8. Goods costing $88,000 were completed and transferred to finished
goods.
9. Finished goods costing $75,000 to manufacture were sold on
account for $103,000.
Instructions
Journalize the transactions.
E2-13
Tombert Decorating uses a job order cost system to collect the costs of
its interior decorating business. Each client's consultation is treated as
a separate job. Overhead is applied to each job based on the number of
decorator hours incurred. Listed below are data for the current year.
Estimated overhead $960,000 Actual overhead $982,800 Estimated
decorator hours 40,000 Actual decorator hours 40,500
The company uses Operating Overhead in place of Manufacturing
Overhead.
Instructions