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). During January, the company had the following transactions: (a) Purchased $62,000 worth of materials on account. (b) Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost $ 11,300 20,600 6,900 $ 38,800 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number 201 202 Factory supervision Hours 115 395 Total Cost $ 2,100 10.100 4.800 $ 17,000 (d) Applied overhead to production at a rate of $28.00 per direct labor hour for 510 actual direct labor hours. (e) Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory utilities Factory insurance Total Cost $ 3,600 3.900 3,700 2,700 $13,900 Description Paid in cash Factory equipment Incurred but not paid Prepaid policy (1) Completed Job 201 and transferred it to Finished Goods Inventory. (g) Sold Job 200 for $50,700.

Answer 1

1.

Raw Materials Inventory
1/1	33,000
a.	62,000	38,800	b.
31/1	56,200
Work in Process Inventory
1/1	24,500
b.	31,900
c.	12,200
d.	14,280	41,120	f.
31/1	41,760
Finished Goods Inventory
1/1	22,000	22,000	g.
f.	41,120
31/1	41,120
Cost of Goods Sold
1/1	0
g.	22,000
31/1	22,000
Manufacturing Overhead
1/1	0	14,280	e.
b.	6,900
c.	4,800
e.	13,900
31/1	11,320
Sales Revenue
1/1			0
		50,700	g.
31/1		50,700

2.

a.	Raw Materials Inventory	$ 56,200
b.	Work in Process Inventory	41,760
c.	Finished Goods Inventory	41,120
d.	Cost of Goods Sold ( Unadjusted )	22,000
e.	Manufacturing Overhead	11,320 Dr.

3.

Job No.	Total Cost of Job
201	$ 41,120
202	41,760