Question

Amount De Cost Sheets structions Yurman Inc uses a job-order costing system. During the month of May, the following transactions occurred May Purchased materials on account for $29.670. Requisitioned materials totaling S24 500 for use in production of the total 59.200 was for Job 58 $8.900 for Job 59, and the remainder for Job 60 Incurred direct labor for the month of $32.400 with an average wage of $18 per hour. Job 58 used 800 hours Job 59, 600 hours and Job 60 400 hours. Incurred and paid actual overhead of $17.880 (credit Various Payables). Charged overhead to production at the rate of $4.80 per direct labor hour Completed and transferred Jobs 58 and 59 to Finished Goods Sold Job 57 (see beginning balance of Finished Goods) and Job 58 to their respective clients on account for a price of cost plus 40%.

Answer 1

1.

Date	General Journal	Debit	Credit
May 1	Raw material	$29,670
	Accounts payable		$29,670
May 3	Work in process	$24,500
	Raw material		$24,500
May 31	Work in process	$32,400
	Wages payable		$32,400
May 31	Overhead control	$17,880
	Various payable		$17,880
	Various payable	$17,880
	Cash		$17,880
May 31	Work in process	$8,640
	Overhead control (1,800*$4.8)		$8,640
May 31	Finished goods ($27,440+22,580)	$50,020
	Work in process		$50,020
May 31	Cost of goods sold ($25,600+27,440)	$53,040
	Finished goods		$53,040
	Sales revenue ($53,040+40%)	$74,256
	Cost of goods sold		$74,256

2.

YUMAN INC. Job Order Cost Sheets For The Month of May
	Job 58	Job 59	Job 60
Direct material	$9,200	$8,900	$6,400
Direct labor	14,400 (800*$18)	10,800 (600*$18)	7,200 (400*$18)
Applied overhead	3,840 (800*$4.8)	2,880 (600*$4.8)	1,920 (400*$4.8)
Total	$27,440	$22,580	$15,520

3. Raw material ending balance = $2,300+29,670-24,500 = $7,470

4. Work in process ending balance = $15,520 (Job 60)

5. Finished goods ending balance = $22,580 (Job 59)