Q1. Van Tiffin Manufacturing Company began operations on January 1, 2006.

The Company was affected by the following events during its first year of
operation:
1. Purchased materials, $4,000.
2. Transferred $2,000 of direct materials to production (Job #1:
$1,500; Job #2: $500)
3. Recorded payroll of 2500 out of which 2200 amounts to accrued
payroll and 300 is FICA tax payable.
4. Paid direct labor costs, $2,500 (Job #1: $1,250; Job #2: $1,250)
5. Paid $1,500 cash for various actual overhead costs.
6. Applied overhead to work in process at 60% of direct labor cost.
7. Completed Job #1 and transferred it to Finished Goods.
8. Sold Job 1 to customer.

Q2. The Fine manufacturing company uses job order costing system. The company
uses machine hours to apply overhead cost to jobs. At the beginning of 2012, the
company estimated that 150,000 machine hours would be worked and $900,000
overhead cost would be incurred during 2012.
The balances of raw materials, work in process (WIP), and finished goods at the
beginning of 2012 were as follows:
Raw materials $ 40,000
Work in process 30,000
Finished goods 60,000
The Fine manufacturing company recorded the following transactions during 2012:
a. Raw materials purchased on account, $820,000.
b. Raw materials were requisitioned for use in production, $760,000
($720,000 direct materials and $40,000 indirect materials).
c. Direct labor labor, $150,000; indirect labor, $220,000; sales commission,
$180,000; and administrative salaries, $400,000.
d. Sales travel costs were $34,000.
e. Utility costs incurred in the factory, $86,000.
f. Advertising expenses were $360,000.
g. Depreciation for the year was $700,000 ($560,000 relates to factory and
$140,000 relates to selling and administrative activities).
h. Insurance expired during the year, $20,000 ($14,000 relates to factory
operations and $6,000 relates to selling and administrative activities).
 i. Fine manufacturing company worked 160,000 machine hours.
Manufacturing overhead was applied to production.
j. Goods costing $1,800,000 were completed during the year.
k. The goods costing $1,740,000 were sold to customers for $3,000,000.
Required:
1. Prepare journal entries.

Q3. Ahmed Printing Company uses a job order costing system. The following data summarizes
the operations for the first quarter of the year.

a. Materials purchased on account $250,000 and manufacturing wages incurred $95,000.

b. Materials requisitioned and factory labor used by job( Prepare separate entries for issuance of
material and distribution of payroll):

Job Number Materials Labor

A20 $50000 $20000
A21 75000 30000
A22 25000 10,000
A23 60000 25,000
General Use (Indirect) 5000 10000
Totals $215,000 $95000

c. Manufacturing Overhead costs incurred on account = $55,500.

d. Depreciation on Equipment = $20000.

e. Predetermined Overhead Rate = 70% of direct labor cost.

f. Jobs completed during the quarter: A20, A21, and A23.

g. Job sold during the quarter : A 20 and A 23.

Required:

Prepare journal entries to record all events described above.