Question

х Instructions Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 3 31 Purchased materials on account for $29,680. Requisitioned materials totaling $24,480 for use in production. Of the total, $9,220 was for Job 58, $8,940 for Job 59, and the remainder for Job 60. Incurred direct labor for the month of $28,800, with an average wage of $16 per hour. Job 58 used 790 hours; Job 59, 590 hours; and Job 60, 420 hours. Incurred and paid actual overhead of $17,860 (credit Various Payables). Charged overhead to production at the rate of $4.70 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%. 31 31 31 31 Beginning balances as of May 1 were: Materials $2,350 Work in Process 0 Finished Goods (Job 57) 25,550 Required: 1. Prepare journal entries for transactions from May 1 through 31. 2. Prepare brief job-order cost sheets for Jobs 58, 59, and 60. 3. Calculate the ending balance of Raw Materials. 4. Calculate the ending balance of Work in Process. 5. Calculate the ending balance of Finished Goods.

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-May	Raw materials inventory					29,680
	Accounts payable						29,680
3-May	Work in process inventory					24,480
	Raw materials inventory						24,480
31-May	Work in process inventory					28,800
	Factory wages						28,800
31-May	manufacturing overhead					17,860
	Various payables						17,860
31-May	Work in process inventory					8460
	manufacturing overhead						8460
31-May	Finished goods inventory					46,706
	work in process inventory						46,706
31-May	cost of goods sold					51,103
	Finished goods inventory						51,103
	Accounts receivable					71,544
	sales						71,544
2)	Job order cost sheets
			Job 58	Job 59	Job 60	total
	direct materials		9,200	8,940	6,340	24,480
	direct labor		12640	9440	6720	28800
	overhead applied		3713	2773	1974	8460
	total		25,553	21,153	15,034	61,740
3)	Raw materials ending balance is
	opening	2,350	WIP	24,480
	purchase	29,680
	end bal	7,550
4)	work in process ending balance
	opening	0	finished	46,706
	DM	24,480
	DL	28800
	OH	8460
	end bal	15,034
5)	finished goods ending balance
	opening	25,550	COGS	51,103
	WIP	46,706
	End bal	21,153