Job order cost; journal entries; ending work in process; inventory analysis Gomez Co. m...

Job order cost; journal entries; ending work in process; inventory analysis

Gomez Co. manufactures goods to special order and uses a job order cost system. During its first month of operations, the following selected transactions took place:

a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . $37,000

b. Materials issued to the factory:

Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200

Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,700

Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100

Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700

For general use in the factory . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350

c. Factory wages and salaries earned:

Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,700

Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,800

Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,200

Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100

For general work in the factory . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250

d. Miscellaneous factory overhead costs on account. . . . . . . . . . . . $ 2,400

e. Depreciation of $2,000 on the factory machinery recorded.

f. Factory overhead allocated as follows:

Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,200

Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,800

Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

g. Jobs 101, 102, and 103 completed.

h. Jobs 101 and 102 shipped to the customer and billed at $39,000.

Required:

1. Prepare a schedule reflecting the cost of each of the four jobs.

2. Prepare journal entries to record the transactions.

3. Compute the ending balance in Work in Process.

4. Compute the ending balance in Finished Goods.