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Judy Sofas

Price: $2.50

E17-16 Job order costing journal entries [20–25 min]
Consider the following transactions for Judy’s Sofas:

a. Incurred and paid Web site expenses, $2,900.
b. Incurred manufacturing wages of $15,000, 60% of which was direct labor and 40%
of which was indirect labor.
c. Purchased materials on account, $24,000.
d. Used in production: direct materials, $9,500; indirect materials, $4,500.
e. Recorded manufacturing overhead: depreciation on plant, $10,000; plant insurance,
$1,300; plant property tax, $4,200 (credit Property tax payable).
f. Allocated manufacturing overhead to jobs, 250% of direct labor costs.
g. Completed production, $38,000.
h. Sold inventory on account, $20,000; cost of goods sold, $10,000.
i. Journalized the closing of the manufacturing overhead account.

1. Journalize the transactions in Judy’s general journal.

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