Bonita Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s production.

1. Materials purchased on account $197,000, and factory wages incurred $90,200.
2. Materials requisitioned and factory labor used by job:

Job Number Materials Factory Labor
A20 $38,240 $19,500
A21 44,120 22,200
A22 37,600 15,100
A23 41,870 25,800
General factory use 4,970 7,600
$166,800 $90,200

3. Manufacturing overhead costs incurred on account $51,000.
4. Depreciation on factory equipment $16,850.
5. Depreciation on the company’s office building was $15,300.
6. Manufacturing overhead rate is 80% of direct labor cost.
7. Jobs completed during the quarter: A20, A21, and A23.
Prepare a schedule showing the individual cost elements and total cost for each job in item 7.

Required:
Prepare entries to record the operations summarized above.

Journal entries

1) Debit Material $197,000 Credit Accounts Payable $197,000

 Debit Salaries Expense $90,200 Credit Salaries Payable $90,200

2) Debit Work in process $161,830 Credit Material $161,830

   Debit Work in process $82,600 Credit Salaries expense $82,600

   Debit Factory overhead $12,570 Credit Material $4,970 Credit Salaries $7,600

3) Debit Manufacturing overhead $51,000 Credit Accounts Payable $51,000

4) Debit Depreciation $16,850 Credit Accumulated Depreciation Factory Equipment $16,850

5) Debit Depreciation $15,300 Credit Accumulated Depreciation on Office building $15,300

6) Debit Work in process $66,080 Credit Manufacturing overhead $66,080

7) Debit Finished Goods $245,730 Credit Work in process $245,730

Cost Schedule

Details                           A20              A21          A23           TOTAL

Direct Material          38,240         44,120       41,870        124,230

Direct Labor             19,500          22,200     25,800         67,500

Applied overheads  15,600          17,760      20,640       54,000

                                                                                          $245,730

Explanation:

Material used = 38,240 + 44,120+37,600+41,870 = $161,830 work in process

Labor = 19,500+22,200+15,100+25,800 =82,600 work in process

Applied overheard = direct labor * 0.8

      A20= 19,500 *80%=15,600

     A21 = 22,200*80%=17,760

    A22 = 15,100*80%=12,080

    A23 =25,800 *80%=20,640

TOTAL = $66,080

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.