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 $67,000 worth of materials on account. (b) Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost $ 11,000 21,100 5,900 $ 38,000 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number 201 Hours 116 389 202 Factory supervision Total Cost $ 2,100 10,200 4,300 $ 16,600 (d) Applied overhead to production at a rate of $26.00 per direct labor hour for 505 actual direct labor hours. (e) Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory utilities Factory insurance Total Cost $ 2,200 4,100 4,400 1,700 $12,400 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 $51,000. Job 202 was still in process at the end of January.

Answer 1

			job 201	job202	total
Beginning work in process			16,500		16,500
Cost added during the year
Direct materials			11,000	21,100	32,100
Direct labor			2,100	10,200	12,300
OH applied			3016	10114	13130
total cost added			16,116	41,414	57,530
total cost of job			32,616	41,414	74,030
Raw Materials					work in process inventory
1-Jan	38,000				1-Jan	16,500
a	67,000	38,000	b		b	32,100	32,616	f
					c	12,300
31-Jan	67,000				d	13130
					31-Jan	41,414
Finished goods inventory					cost of goods sold
1-Jan	26,000				1-Jan
f)	32,616	26,000	g)		g)	26,000
end bal	32,616				end bal	26,000
Manufacturing overhead					Sales revenue
1-Jan					1-Jan
b)	5,900	13130	d)				51,000	g)
c)	4,300
e)	12,400
31-Jan	9,470						51,000	31-Jan
Miscellaneous accounts
1-Jan
g)	51,000	67,000	a)
		16,600	c)
		12,400	e)
		45,000
2)	ending balances
a	Raw materials inventory				67,000
b	work in process inventory				41,414
c	finished goods inventory				32,616
d	cost of goods sold(unadjusted)				26,000
e	manufacturing overhead				9,470
3)	job	total cost
	number	of job
	201	32,616
	202	41,414