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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| 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 |
| 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). |
| |
$ | 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 |
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