Question

Question 5 Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,600, direct labour $15,300, and manufacturing overhead $20,800. As of January 1, Job No. 49 had been completed at a cost of $120,000 and was part of finished goods inventory. There was a $25,200 balance in the Raw Materials Inventory account. During the month of January, Bertrand Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $152,300 and $198,800, respectively. The following additional events occurred during the month: 1. Bertrand purchased additional raw materials of $105,000 on account. 2. It incurred factory labour costs of $75,200. Of this amount, $18,000 related to employer payroll taxes. 3. It incurred manufacturing overhead costs as follows: indirect materials $18,000, indirect labour $17,200, depreciation expense $14,300, and various other manufacturing overhead costs on account $22,300. 4. It assigned direct materials and direct labour to jobs as follows: Direct Materials Direct Labour Job No. 50 51 $12,000 42,400 35,100 $7,400 28,500 22,500 52

Answer 1

Particulars			Debit	Credit
Cost of Goods sold			$ 2,21,196.00
To Finished Goods Inventory				$ 2,21,196.00

Working:

Job 49
Total Cost			$ 1,20,000.00
Job 50
Beginning costs:
Direct Materials		$ 30,600.00
Direct Labor		$ 15,300.00
Manu. OH		$ 20,800.00
	(A)	$ 66,700.00
Cost during the period:
Direct Materials		$ 12,000.00
Direct Labor		$   7,400.00
Manu. OH		$ 15,096.00
	(B)	$ 34,496.00
Total Cost	(A+B)		$ 1,01,196.00
Cost of Goods sold			$ 2,21,196.00

Is this correct?