Question

E2-18 Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] 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 $60,000 worth of materials on account. (b) Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost $ 10,400 20,300 5,100 $ 35,800 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number 201 202 Factory supervision Hours 108 383 Total Cost $ 2,100 10,100 5,400 $ 17,600 (d) Applied overhead to production at a rate of $28.00 per direct labor hour for 491 actual direct labor hours. (e) Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory utilities Factory insurance Total Cost $ 2,400 3,900 3,400 Description Paid in cash Factory equipment Incurred but no Incurred but not paid Prepaid policy $13,100 (f) Completed Job 201 and transferred it to Finished Goods Inventory. (9) Sold Job 200 for $51,900.

Answer 1

			job 201	job202	total
Beginning work in process			20,500		20,500
Cost added during the year
Direct materials			10,400	20,300	30,700
Direct labor			2,100	10,100	12,200
OH applied			3024	10724	13748
total cost added			15,524	41,124	56,648
total cost of job			36,024	41,124	77,148
Raw Materials					work in process inventory
1-Jan	37,000				1-Jan	20,500
a	60,000	39,700	b		b	30,700	36,024	f
					c	12,200
31-Jan	57,300				d	13748
					31-Jan	41,124
Finished goods inventory					cost of goods sold
1-Jan	27,000				1-Jan
f)	36,024	27,000	g)		g)	27,000
end bal	36,024				end bal	27,000
Manufacturing overhead					Sales revenue
1-Jan					1-Jan
b)	5,100	13748	d)				51,900	g)
c)	5,400
e)	13,100
31-Jan	9,852						51,900	31-Jan
Miscellaneous accounts
1-Jan
g)	51,900	60,000	a)
		17,600	c)
		13,100	e)
		38,800
2)	ending balances
a	Raw materials inventory				57,300
b	work in process inventory				41,124
c	finished goods inventory				36,024
d	cost of goods sold(unadjusted)				27,000
e	manufacturing overhead				9,852
3)	job	total cost
	number	of job
	201	36,024
	202	41,124