Question

Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials. Material M 350 units @ $280 $ 98,000 Material R 145 units 30, 450 65 units 7,150 $135,600 210 - 110 - Paint Total cost K On May 4, the company began working on two technopresses: Job 102 for Worldwide Company and Job 103 for Reuben Company. a. Purchased raw materials on credit and recorded the following information from receiving reports and invoices. Receiving Report No. 426, Material M, 280 units at $280 each Receiving Report No. 427, Material R, 140 units at $210 each. Instructions: Record these purchases with a single journal entry. Enter the receiving report information on the materials ledger cards. b. Requisitioned the following raw materials for production Requisition No. 35, for Job 102, 189 units of Material M. Requisition No. 36, for Job 102,72 units of Material R. Requisition No. 37, for Job 103, 98 units of Material M. Requisition No. 38, for Job 103, 110 units of Material R. Requisition No. 39, for 21 units of paint. Instructions: Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets. Enter the Indirect materials amount on the materials ledger card. c. Received the following employee time tickets for work in May.

Answer 1

Requirement 1 units 350 a May-01 Beginning Balance Purchases, Receiving report No. 426 b Requisition No. 35 for Job 102 b Requisition No. 37 for Job 103 May-31 Ending Balance 280 -189 -98 343 Material M rate Amount $ 280$ 98,000 $ 280 $ 78,400 $ 280 $ (52,920) $ 280$ (27,440) $ 280$ 96,040 Material R rate units 145 $ a 140 $ May-01 Beginning Balance Purchases, Receiving report No. 427 b Requisition No. 36 for Job 102 b Requisition No. 38 for Job 103 May-31 Ending Balance Amount 30,450 29,400 (15,120) (23,100) 21,630 -72 -110 210$ 210$ 210$ 210$ 210 $ $ $ $ 103 Paint rate units 65 May-01 b May-31 Beginning Balance Requisition No. 39 Ending Balance $ S Amount 110$ 7,150 100 $ (2,100) 110 $ 5,050 -21 44 $ Total Requirement 2 Job Cost Sheet Particulars May-01 Beginning Balance b Material Requisition с Time Tickets Applied manufacturing Overhead Sub-Total Jobs Completed- Transferred to Finished goods May-31 Ending Balance Job 102 $ 68,040$ 87,000 $ 69,600 $ 224,640 $ (224,640) $ $ $ $ $ $ $ $ $ Job 103 $ 50,540 $ 57,000 $ 45,600 $ 153,140 $ $ 153,140 $ e 118,580 144,000 115,200 377,780 (224,640) 153,140 e

Requirement 3 Journal S.No. Particulars Raw Materials Inventory (78400+29400) Accounts Payable (Raw material purchased) (in $) Debit 107,800 (in $) Credit a 107,800 b 118,580 2,100 Work in Process Inventory (52920+27440+15120+23100) Factory Overhead Raw Materials Inventory (Raw Material used in process) 120,680 C 144,000 21,500 Work in Process Inventory (87000+57000) Factory Overhead Wages Payable (Factory wages payable) 165,500 d Wages Payable Factory Overhead Cash (To record payment of factory expenses) 165,500 106,000 271,500 el 69,600 Work in Process Inventory (87000*80%) Factory Overhead (Manufacturing OH applied for Job 102) 69,600 e2 224,640 Finished Goods Inventory Work in Process Inventory (Transferred goods from WIP to finished goods) 224,640 f1 410,000 Accounts Receivable Sales (To record sales made on account) 410,000 f2 224,640 Cost of goods sold Finished Goods Inventory (To record cost of goods sold) 224,640 45,600 Work in Process Inventory (57000*80%) Factory Overhead (Manufacturing OH applied for Job 103) 45,600