Solution:
1) Preparing a Job Cost Sheet for Each Job Worked on During the Month:
|
Job 136 |
Job 137 |
Job 138 |
Job 139 |
Job 140 |
Materials |
$48,500 |
$33,500 |
$19,200 |
$22,600 |
$6,800 |
Labor |
$12,100 |
$10,500 |
$37,900 |
$39,400 |
$3,200 |
Overhead (200% of Labor) |
$24,200 |
$21,000 |
$75,800 |
$78,800 |
$6,400 |
Total Cost |
$84,800 |
$65,000 |
$132,900 |
$140,800 |
$16,400 |
2) Preparing Journal Entries to Record the Events and Transactions a through j:
Event |
General journal |
Debit |
Credit |
a |
Raw Materials Inventory |
$240,000 |
|
|
Accounts Payable |
|
$240,000 |
|
|
|
|
b |
Factory Payroll |
$129,600 |
|
|
Cash |
|
$129,600 |
|
|
|
|
c |
Factory Overhead |
$15,750 |
|
|
Cash |
|
$15,750 |
|
|
|
|
d |
Goods in process inventory |
$130,600 |
|
|
Factory overhead |
$20,000 |
|
|
Raw materials inventory |
|
$150,600 |
|
|
|
|
e |
Goods in process inventory |
$103,100 |
|
|
Factory overhead |
$26,500 |
|
|
Factory payroll |
|
$129,600 |
|
|
|
|
f |
Goods in process inventory |
$178,800 |
|
|
Factory Overhead |
|
$178,800 |
|
|
|
|
g |
Finished Goods Inventory |
$358,500 |
|
|
Goods in process inventory |
|
$358,500 |
|
|
|
|
h (1) |
Accounts Receivable |
$545,000 |
|
|
Sales |
|
$545,000 |
|
|
|
|
h (2) |
Cost of goods sold |
$217,700 |
|
|
Finished goods inventory |
|
$217,700 |
|
|
|
|
i |
Factory Overhead |
$153,500 |
|
|
Accum. depreciation – Factory building |
|
$69,000 |
|
Accum. depreciation – Factory equipment |
|
$37,000 |
|
Prepaid insurance |
|
$11,000 |
|
Property taxes payable |
|
$36,500 |
|
|
|
|
j |
Goods in process inventory |
$27,400 |
|
|
Factory overhead |
|
$27,400 |
3) Preparing T-Accounts for the Each of the Following General Ledger Accounts:
Raw Materials Inventory |
a |
$240,000 |
|
|
|
|
$150,600 |
d |
Ending Balance |
$89,400 |
|
|
Factory Payroll |
b |
$129,600 |
|
|
|
|
$129,600 |
e |
Ending Balance |
$0 |
|
|
Goods In Process Inventory |
d |
$130,600 |
|
|
e |
$103,100 |
|
|
f |
$178,800 |
|
|
|
|
$358,500 |
g |
j |
$27,400 |
|
|
Ending Balance |
$81,400 |
|
|
Factory Overehead |
c |
$15,750 |
|
|
d |
$20,000 |
|
|
e |
$26,500 |
|
|
|
|
$178,800 |
f |
i |
$153,500 |
$27,400 |
j |
Ending Balance |
$9,550 |
|
|
Finished Goods Inventory |
g |
$358,500 |
|
|
|
|
$217,700 |
h |
Ending Balance |
$140,800 |
|
|
Cost of Goods Sold |
h |
$217,700 |
|
|
Ending Balance |
$217,700 |
|
|