Monday, August 19, 2013

Tuscarora Hardwoods, a custom manufacturer of furniture, uses job-order costing

Tuscarora Hardwoods, a custom manufacturer of furniture, uses job-order costing. The following tran.-

actions to support job MRS-55 for a custom meeting room set-a large table plus 16 chairs-occurre:

in January:

a. Purchased $10,000 ofraw materials.

b. Issued $500 of supplies from raw-material inventory.

c. Purchased $7,000 ofraw material.

d. Paid for the raw material purchased in transaction (a).

e. Issued $8,500 in raw material to the production department.

f. Incurred production labor costs of $12,500, which were credited to Payroll Payable.

g. Paid $23,250 cash for utilities, power, equipment maintenance, and miscellaneous items for the

manufacturing plant.

h. Applied overhead on the basis of 185 percent of $8,500 in material costs.

i. Recognized depreciation on manufacturing property, plant, and equipment of $6,250.

Required

Prepare journal entries to record these transactions.


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