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 $70,000 worth of materials on account (b) Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost S 11,100 21,300 5,700 $ 38,100 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following Job Number 201 202 Factory supervision Hours Total Cost 114 2,300 10,500 4,800 $17,600 396 (d) Applied overhead to production at a rate of $29.00 per direct labor hour for 510 actual direct labor hours. (e) Recorded the following actual manufacturing overhead costs: Total Cost Item Factory rent S 3,800 4,500 3,100 3,100 $14,500 Paid in cash Factory equipment Incurred but not paid Prepaid policy Factory utilities Factory insurance (T) Completed Job 201 and transferred it to Finished Goods Inventory (g) Sold Job 200 for $50,300. Job 202 was still in process at the end of January

Answer 1

			job 201	job202	total
Beginning work in process			15,500		15,500
Cost added during the year
Direct materials			11,100	21,300	32,400
Direct labor			2,300	10,500	12,800
OH applied			3306	11484	14790
total cost added			16,706	43,284	59,990
total cost of job			32,206	43,284	75,490
Raw Materials					work in process inventory
1-Jan	40,000				1-Jan	15,500
a	70,000	37,100	b		b	32,400	32,206	f
					c	12,800
31-Jan	72,900				d	14790
					31-Jan	43,284
Finished goods inventory					cost of goods sold
1-Jan	24,000				1-Jan
f)	32,206	24,000	g)		g)	24,000
end bal	32,500				end bal	24,000
Manufacturing overhead					Sales revenue
1-Jan					1-Jan
b)	5,700	14790	d)				50,300	g)
c)	4,800
e)	14,500
31-Jan	10,210						50,300	31-Jan
Miscellaneous accounts
1-Jan
g)	50,300	70,000	a)
		17,600	c)
		14,500	e)
		51,800
2)	ending balances
a	Raw materials inventory				72,900
b	work in process inventory				43,284
c	finished goods inventory				32,500
d	cost of goods sold(unadjusted)				24,000
e	manufacturing overhead				10,210
3)	job	total cost
	number	of job
	201	32,206
	202	43,284