Iii brief exercises be2-1 dieker company begins operations on january

III BRIEF EXERCISES

BE2-1 Dieker Company begins operations on January 1. Because all work is done to customer specifications, the company decides to use a job order cost system. Prepare a flowchart of a typical job order system with arrows showing the flow of costs. Identify the eight transactions.

8E2-2 During January, its first month of operations, Dieker Company accumulated the following manufacturing costs. raw materials $4,000 on account, factory labor $6,000 of which $5,200 relates to factory wages payable and $800 relates to payroll taxes payable, and utili- i ties payable $2,000. Prepare separate journal entries for each type of manufacturing cost.

BE2.3 In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used.

BE24 Factory labor data for Dieker Company is given in BE2-2. During January, time tickets show that the factory labor of $6,000 was used as follows: Job 1 $2,200, Job 2 $1,600, Job 3 $1,400, and general factory use $800. Prepare a summary journal entry to record factory labor used.

8E2-5 Data pertaining to job cost sheets for Dieker Company are given in BE2-3 and BE2-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing Overhead.)

 

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