Question

Correct my answers

Re Problem 19-5A Production transactions, subsidiary records, and source documents LO P1, P2, P3, P4 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. Naterial M 400 units e $270 -$108,000 NaterialR 115 units 280 32,200 Paint Total cost 65 units 956,175 $146,375 On May 4, the company began n working on two technopresses: Job 102 for Worldwide Company and Job 103 for Reuben Company Purchased raw materials on credit and recorded the following information from receiving reports and invoices Receiving Report No. 426, Material M, 270 units at $270 each. Receiving Report No. 427, Material R, 110 units at $280 each. eiving report information on the materials ledger cards. b. Requisitioned the following raw materials for production Requisition No. 35, for Job 102, 216 units of Material M. Requisition No. 36, for Job 102, 72 units of Material R Requisition No. 37, for Job 103, 112 units of Material M. Requisition No. 38, for Job 103, 87 units of Material R Requisition No. 39, for 19 units of paint K Prev14 of 14 Next tn Lorect or incorrect for the work you have completed so far. It does not indicate complet 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. Received the following employee time tickets for work in May Time tickets Nos. 1 to 10 for direct labor on Job 102, $83,000 Time tickets Nos. 11 to 30 for direct labor on Job 103, $52,000. Time tickets Nos. 31 to 36 for equipment repairs, $22,250 Record direct labor from the time tickets on the job cost sheets. d. Paid cash for the following items during the month: factory payroll $157250, and miscellaneous overhead items, $128,000. Use the time tickets to record the total direct and indirect labor costs e. Finished Job 102 and transferre d it to the warehouse. The company assigns overhead to each job with a predetermined overhead rate equal to 80% of direct labor cost. Enter the allocated overhead on the cost sheet for Job 102. fill in the cost summary s 2. fill in the cost summary section of the cost sheets. Delivered Job 102 and accepted the customer's promise to pay $590,000 within 30 days. g. Applied overhead cost to Job 103 based on the job's direct labor to date. cards for Material M, Material R, and paint using the information given in part a cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e. Prepare jo urnal entries for part a through g Answer is not complete. the materials ledger cards for Material M, Material R, and paint using the information given in part a and b. MATERIALS LEDGER CARD Material M Balance Unit Issued Total otal Requisition Units PricePrice Units 427 I R Balance Unit Unit Total Pr Total Total Requ Unit Receiving Units Price Units #426 Paint Total Unit Total Units P sition Units DateR t Units Unit 14 58,320。#1-10 20,160 66,400 66,400 of 66,400 103 Time Ticket 4,160 54 Total 4,160 comple 14 103,700 103,700 d. 128,000 ) 66,400 14 Job Cost General Requisition Prepare journal entries for part a through g. (If no entry is required for a transaction/event, select "No journal entry requine account field.) points Journal entry worksheet Record the purchase of raw materials on credit from the receiving reports and invoices given in letter a). Record these purchases with a single journal entry. tion Debit 103,700 103,700 Clear entry Record entry Job Cost Sheets

Answer 1

Part 1)

The journal entries are completed as below:

Transaction	General Journal	Debit	Credit
a)	Raw Materials Inventory (270*270 + 110*280)	$103,700
	Accounts Payable		$103,700
b)	Factory Overhead (19*95)	$1,805
	Work in Process Inventory (216*270 + 72*280 + 112*270 + 87*280)	$133,080
	Raw Materials Inventory		$134,885
c)	Work in Process Inventory (83,000 + 52,000)	$135,000
	Factory Overhead	$22,250
	Cash		$157,250
d)	Factory Overhead	$128,000
	Cash		$128,000
e)	Finished Goods Inventory (216*270 + 72*270 + 83,000 + 83,000*80%)	$227,880
	Work in Process Inventory		$227,880
f(1)	Accounts Receivable	$590,000
	Sales		$590,000
f(2)	Cost of Goods Sold	$227,880
	Finished Goods Inventory		$227,880
g)	Work in Process Inventory (135,000*80%)	$108,000
	Factory Overhead		$108,000

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Part 2)

The job cost sheets are completed as follows:

Job Cost Sheet
Customer's Name	Worldwide Company			Job No.	102
	Direct Materials	Direct Labor		Overhead Applied Costs
Requisition Number	Amount	Time Ticket Number	Amount	Rate%	Amount
#35	58,320	#1-10	83,000	80%	66,400
#36	20,160
Total	78,480	Total	83,000	Total	66,400
Summary of Costs
Direct Materials	78,480
Direct Labor	83,000
Overhead	66,400
Total Cost of Job	$227,880
Customer's Name	Reuben Company			Job No.	103
	Direct Materials	Direct Labor		Overhead Applied Costs
Requisition Number	Amount	Time Ticket Number	Amount	Rate%	Amount
#37	30,240	#11-30	52,000	80%	41,600
#38	24,360
Total	54,600	Total	52,000	Total	41,600
Summary of Costs
Direct Materials	54,600
Direct Labor	52,000
Overhead	41,600
Total Cost of Job	$148,200

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Part 3)

The material ledger cards are completed as below:

MATERIALS LEDGER CARD
Item	Material M
Received					Issued				Balance
Date	Receiving Report	Units	Unit Price	Total Price	Requisition	Units	Unit Price	Total Price	Units	Unit Price	Total Price
May-01									400	270	108,000
	#426	270	270	72,900					670	270	180,900
					#35	216	270	58320	454	270	122,580
					#37	112	270	30240	342	270	92,340
Item	Material R
Received					Issued				Balance
Date	Receiving Report	Units	Unit Price	Total Price	Requisition	Units	Unit Price	Total Price	Units	Unit Price	Total Price
May-01									115	280	32,200
	#427	110	280	30,800					225	280	63,000
					#36	72	280	20,160	153	280	42,840
					#38	87	280	24,360	66	280	18,480
Item	Paint
Received					Issued				Balance
Date	Receiving Report	Units	Unit Price	Total Price	Requisition	Units	Unit Price	Total Price	Units	Unit Price	Total Price
May-01									65	95	6,175
					#39	19	95	1,805	46	95	4,370