Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs:
Work in Process Balance on 3/1
Job 33 $ 7,500
Job 34 6,000
$ 13,500
Source documents revealed the following during March:
Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End
Job 33 $ 3,500 $ 6,500 Completed and sold
Job 34 6,000 7,800 Completed, but not sold
Job 35 4,200 3,250 In process
Indirect 1,300 2,140
$ 15,000 $ 19,690
The company applies overhead to products at a rate of 150 percent of direct labor cost.
Required:
Prepare journal entries to record the materials requisitions, labor costs, and applied overhead.