Troupe Company’s predetermined overhead rate is 90% of direct labor. Information on the co...

Troupe Company’s predetermined overhead rate is 90% of direct labor. Information on the company’s production activities during September 2011 follows.

a.Purchased raw materials on credit, $57,000.

b.Paid $99,750 cash for factory wages.

c.Paid $11,250 cash for miscellaneous factory overhead costs.

d.Materials requisitions record use of the following materials for the month.

e. Time tickets record use of the following labor for the month.

f.Allocated overhead to Jobs 487, 489, and 490.

g.Transferred Jobs 487, 489, and 490 to Finished Goods.

h.Sold Jobs 487 and 489 on credit for a total price of $225,000.

i.The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

j. Applied overhead at month-end to the Goods in Process (Jobs 488 and 491) using the predetermined overhead rate of 90% of direct labor cost.

Required

1. Prepare a job cost sheet for each job worked on in the month. Use the following simplified form.

2.Prepare journal entries to record the events and transactions a through j.

3.Set up T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these T-accounts and determine the balance of each account.

4.Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.