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 $68,000 worth of materials on account. (b) Recorded materials issued to production as follows Job Number 201 202 Indirect materials Total Cost $ 11,200 21,800 6,800 $ 39,800 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following Job Number 201 202 Factory supervision Hours Total Cost 102 $ 2,100 11,000 5,600 $ 18,700 395 (d) Applied overhead to production at a rate of $27.00 per direct labor hour for 497 actual direct labor hours (e) Recorded the following actual manufacturing overhead costs Item Factory rent Depreciation Factory utilities Factory insurance Total Cost Description S 3,800 4,900 2,900 3,300 $14,900 Paid in cash Factory equipment Incurred but not paid Prepaid policy
What are the transactions on the t-accounts and compute the ending balance

Answer 1

Req 1) T-Accounts:
DEBIT	Amount $	CREDIT	Amount $
RM Inventory A/c
1-Jan	41000	WIP	33000
Pur	68000	M O/H	6800
		31-Jan	69200
Total	109000	Total	109000
WIP Inventory A/c
1-Jan	24500	FG Inv	40554	[24500+11200+2100+(102*27)]
RM	33000	31-Jan	43465
DL	13100
M O/H	13419
Total	84019	Total	84019
FG Inventory A/c
1-Jan	20000	COGS	20000
WIP	40554	31-Jan	40554
COGS A/c
FG Inv.	20000
Sales Revenue A/c
		Cash	51800
Manufacturing Overhead A/c
RM	6800	WIP	13419
Ind. Lab.	5600	Under applied	13881
rent	3800
dep	4900
utilities	2900
insurance	3300
Total	27300	Total	27300
Misc. Accounts:
Prepaid Insurance A/c
		Manuf o/h	3300
Accounts Payable A/c
		M o/h	2900
Depre A/c
Acc.Dep.-Eq	4900	M o/h	4900
Cash A/c
Sales	51800	M o/h	3800
2. Ending balances:
	Amount $
a: RM Inv	69200
b: WIP Inv	43465
c: FG Inv	40554
d: COGS (unadj.)	20000
e.Manuf. O/h	13881