a. Purchased raw materials on credit, $200,000. b. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 32,500 Job 138 19,200 Job 139 23,000 Job 140 7,200 Total direct materials 130,400 Indirect materials 19,500 Total materials used $ 149,900 c. Paid $15,750 cash to a computer consultant to reprogram factory equipment. d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,100 Job 137 10,500 Job 138 37,500 Job 139 39,200 Job 140 3,800 Total direct labor 103,100 Indirect labor 24,500 Total $ 127,600 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $535,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance forexpired factory insurance). Depreciation of factory building $ 68,000 Depreciation of factory equipment 38,000 Expired factory insurance 12,000 Accrued property taxes payable 37,000 i. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. Prepare a job cost sheet for each job worked on during the month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a.	Purchased raw materials on credit, $200,000.
b.	Materials requisitions record use of the following materials for the month.


Job 136	$	48,500
Job 137		32,500
Job 138		19,200
Job 139		23,000
Job 140		7,200

Total direct materials		130,400
Indirect materials		19,500

Total materials used	$	149,900

c.	Paid $15,750 cash to a computer consultant to reprogram factory equipment.
d.	Time tickets record use of the following labor for the month. These wages were paid in cash.


Job 136	$	12,100
Job 137		10,500
Job 138		37,500
Job 139		39,200
Job 140		3,800

Total direct labor		103,100
Indirect labor		24,500

Total	$	127,600

e.	Applied overhead to Jobs 136, 138, and 139.
f.	Transferred Jobs 136, 138, and 139 to Finished Goods.
g.	Sold Jobs 136 and 138 on credit at a total price of $535,000.
h.	The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).


Depreciation of factory building	$	68,000
Depreciation of factory equipment		38,000
Expired factory insurance		12,000
Accrued property taxes payable		37,000

i.	Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Prepare a job cost sheet for each job worked on during the month.

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