Question

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed).

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 20 Job 202 was started during January. Other select account balances follow ignore any accounts that are not listed) During January, the company had the following transactions (a) Purchased $61,000 worth of materials on account. (b) Recorded materials issued to production as follows: Job Number Total Cost $ 10.200 20,000 5.800 $ 35,000 Indirect materials (c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number 201 Hours 103 399 Total Cost $ 2.700 10,400 4,400 $17.500 Factory supervision (d) Applied overhead to production at a rate of $26.00 per direct labor hour for 502 actual direct labor hours. (e) Recorded the following actual manufacturing overhead costs: Factory rent Depreciation Factory uits Factory insurance To Cos $ 3.500 4,100 4.300 2.100 $14.000 Description Paid in cash Factory equipment incurred but not paid Prepaid policy in Completed Job 201 and transferred it to Finished Goods Inventory (9) Sold Job 200 for $51,800

Answer 1

			job 201	job202	total
Beginning work in process			20,500		20,500
Cost added during the year
Direct materials			10,200	20,000	30,200
Direct labor			2,700	10,400	13,100
OH applied			2678	10374	13052
total cost added			15,578	40,774	56,352
total cost of job			36,078	40,774	76,852
Raw Materials					work in process inventory
1-Jan	35,000				1-Jan	20,500
a	61,000	36,000	b		b	30,200	36,078	f
					c	13,100
31-Jan	60,000				d	13052
					31-Jan	40,774
Finished goods inventory					cost of goods sold
1-Jan	26,000				1-Jan
f)	36,078	26,000	g)		g)	26,000
end bal	36,078				end bal	26,000
Manufacturing overhead					Sales revenue
1-Jan					1-Jan
b)	5,800	13052	d)				51,800	g)
c)	4,400
e)	14,000
31-Jan	11,148						51,800	31-Jan
Miscellaneous accounts
1-Jan
g)	51,800	61,000	a)
		17,500	c)
		14,000	e)
		40,700
2)	ending balances
a	Raw materials inventory				60,000
b	work in process inventory				40,774
c	finished goods inventory				36,078
d	cost of goods sold(unadjusted)				26,000
e	manufacturing overhead				11,148
3)	job	total cost
	number	of job
	201	36,078
	202	40,774