In January, Dieker Company requisitions raw materials for production as follows: Job 1 \$960, Job 2 \$1,400, Job 3 \$760, and general factory use \$620.

Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Work in Process Inventory 3,120
Raw materials Inventory 3,740
During January, time tickets show that the factory labor of \$7,000 was used as follows: Job 1 \$2,320, Job 2 \$1,780, Job 3 \$1,650, and general factory use \$1,250.
Work in process Inventory 5,750
Factory Labor 7,000
Marquis Company estimates that annual manufacturing overhead costs will be \$884,000. Estimated annual operating activity bases are direct labor cost \$461,000, direct labor hours 46,000, and machine hours 101,000.

Compute the predetermined overhead rate for each activity base.

Overhead rate per direct labor cost
191.75%

Overhead rate per direct labor hour
19.21

Overhead rate per machine hour
8.75

divide each operating activity cost by manufacturing overhead cost

In March, Stinson Company completes Jobs 10 and 11. Job 10 cost \$27,300 and Job 11 \$34,500. On March 31, Job 10 is sold to the customer for \$35,600 in cash.

Journalize the entries for the completion of the two jobs and the sale of Job 10.

Finished goods inventory 61,800
work in process inventory 61,800

Cash 35,600
Sales Revenue 35,600

Cost of Goods Sold 27,300
Finished goods inventory 27,300

The gross earnings of the factory workers for Larkin Company during the month of January are \$91,000. The employer's payroll taxes for the factory payroll are \$7,700. The fringe benefits to be paid by the employer on this payroll are \$5,100. Of the total accumulated cost of factory labor, 84% is related to direct labor and 16% is attributable to indirect labor.

(a) Prepare the entry to record the factory labor costs for the month of January.
(b) Prepare the entry to assign factory labor to production.

Factory Labor 103,800
Factory wages payable 91,000
employer payroll taxes 7,700
employer fringe benefit 5,100
work in process inventory 87,192