Question

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 $61,000 worth of materials on account (b) Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost $ 12,000 21,300 6,500 $ 39,800 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number 201 Hours 118 395 202 Total Cost S 2,900 10.900 4.100 $ 17,900 Factory supervision (d) Applied overhead to production at a rate of $29.00 per direct labor hour for 513 actual direct labor hours. (0) Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory utilities Factory insurance Total Cost $ 2,500 4,800 4,300 3,000 $14,600 Description Paid in cash Factory equipment Incurred but not paid Prepaid policy (1) Completed Job 201 and transferred it to Finished Goods Inventory. (g) Sold Job 200 for $51,700. Job 202 was still in process at the end of January Required: 1 Post the needing transactions to T-arounts (Note: Capture the offsetting of dehits and credits to other accounts such as Cash Payables Accumulated Depreciation and so on in Miscellaneous Accounts

Answer 1

			job 201	job202	total
Beginning work in process			21,500		21,500
Cost added during the year
Direct materials			12,200	21,300	33,500
Direct labor			2,900	10,900	13,800
OH applied			3422	11455	14877
total cost added			18,522	43,655	62,177
total cost of job			40,022	43,655	83,677
Raw Materials					work in process inventory
1-Jan	39,000				1-Jan	21,500
a	61,000	39,800	b		b	33,500	40,022	f
					c	13,800
31-Jan	60,200				d	14877
					31-Jan	43,655
Finished goods inventory					cost of goods sold
1-Jan	22,000				1-Jan
f)	40,022	22,000	g)		g)	22,000
end bal	40,022				end bal	22,000
Manufacturing overhead					Sales revenue
1-Jan					1-Jan
b)	6,500	14877	d)				51,700	g)
c)	4,100
e)	14,600
31-Jan	10,323						51,700	31-Jan
Miscellaneous accounts
1-Jan
g)	51,700	61,000	a)
		17,900	c)
		14,600	e)
		41,800
2)	ending balances
a	Raw materials inventory				60,200
b	work in process inventory				43,655
c	finished goods inventory				40,022
d	cost of goods sold(unadjusted)				22,000
e	manufacturing overhead				10,323
3)	job	total cost
	number	of job
	201	40,022
	202	43,655