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Journal EntriesThe work in process account has the following information already posted for the three jobs from the first week of work:JOB 621 JOB 622 JOB 623MATERIALS $2800 $3400 $1800LABOR $2100 $2700 $1350APPLIED F.O. $1680 $2160 $1080__________________________________________________TOTAL $6580 $8260 $4230The following information is for the second week. Make all necessary entries.a. Materials purchased and received, $22,000, terms n/45.b. Materials requisitioned for production were $21,000. Of this amount $2400 were indirect and the rest was distributed as follows: JOB 621–$5300 JOB 622–$7400 JOB 623–$5900.c. $600 of materials were returned to the storeroom. $200 was indirect and $400 was from JOB 622.d. Materials returned to the vendor amounted to $800.e. Gross payroll for the week was $60,000. Federal income tax withheld was $7000. Union dues were $500. FICA was withheld at the rate of 7.65%.f.. The payroll was divided as follows:direct labor……………..55% {JOB 621–$6420, JOB 622–$8160, JOB 623–$18,420}indirect labor…………..20%marketing salaries…….10%admin. salaries…………15%g. Payroll taxes were recorded as follows: {13.85% is the total of the rates}fut………….. .8%sut………….. 5.4%fica………… 7.65%h. Factory overhead amounted to $5500. This included depreciation of $2000, $250 in expired insurance, and $3250 in unpaid bills. {hint…….no crediting expenses!}i. Factory overhead was applied at the rate of 80% of the direct labor charges of letter “f”. {don’t forget to do it by the job}.j. Jobs 621 and 622 were completed and transferred to finished goods. k. Both jobs were shipped and sold at a 40% profit {2 entries!}
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