Jameson Enterprises Uses a Job Costing System

Essay

Jameson Enterprises uses a job costing system. Record the following transactions in Jameson Enterprises' general journal for the current month:

a) Purchased raw materials on account, $112,500
b) Requisitioned $66,750 of direct materials and $10,500 of indirect materials for use in production.
c) Factory payroll incurred, $135,000; 80% direct labour, 20% indirect labour.
d) Recorded depreciation expense factory equipment $18,000, and other manufacturing overhead of $63,150 (credit accounts payable).
e) Allocated manufacturing overhead costs based on 120% of direct labour cost.
f) Cost of completed production for the current month, $213,000.
g) Cost of finished goods sold, $172,500; selling price, $262,500 (all sales on account).