**Job Order Costing Problem:** The following were the inventory balances on 1/1/17: | Raw Materials | Work In Process | Finished Goods | | ------------- | --------------- | -------------- | | $65,000 | $60,000 | $84,000 | The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: - Direct materials $224,000 - Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: - Assembly-line workers: $240,000 - Supervisors: $45,000 - Maintenance workers: $27,000 - Security: $25,000 d. The following were other factory related costs: - Depreciation on equipment: $42,000 - Building rent: $30,000 - Insurance: $18,000 - Utilities: $66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. g. Goods costing $802,000 were sold for $1,463,000. All sales were on credit. **Required:** 1. Prepare journal entries for all items a through g above. Assume items all sales and purchases were on account. 2. Prepare T-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
**Job Order Costing Problem:** The following were the inventory balances on 1/1/17: | Raw Materials | Work In Process | Finished Goods | | ------------- | --------------- | -------------- | | $65,000 | $60,000 | $84,000 | The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: - Direct materials $224,000 - Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: - Assembly-line workers: $240,000 - Supervisors: $45,000 - Maintenance workers: $27,000 - Security: $25,000 d. The following were other factory related costs: - Depreciation on equipment: $42,000 - Building rent: $30,000 - Insurance: $18,000 - Utilities: $66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. g. Goods costing $802,000 were sold for $1,463,000. All sales were on credit. **Required:** 1. Prepare journal entries for all items a through g above. Assume items all sales and purchases were on account. 2. Prepare T-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello, can you please complete the steps below for the following question on the photo. Thank you
a. Record all JEs: "a" through "g"
b. Prepare AJE for MO
c. Provide Balances in RM, WIP, FG, MO, and CGS accounts.
d. Prepare a Schedule of Cost of Goods Manufactured
e. Prepare Income Statement through Gross Profit/Margin
Transcribed Image Text:**Job Order Costing Problem:**
The following were the inventory balances on 1/1/17:
| Raw Materials | Work In Process | Finished Goods |
| ------------- | --------------- | -------------- |
| $65,000 | $60,000 | $84,000 |
The following manufacturing activity occurred during the month of January:
a. Purchased raw materials inventory of $210,000 on account.
b. Kate requisitioned materials to complete various jobs:
- Direct materials $224,000
- Indirect materials $39,000
c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month:
- Assembly-line workers: $240,000
- Supervisors: $45,000
- Maintenance workers: $27,000
- Security: $25,000
d. The following were other factory related costs:
- Depreciation on equipment: $42,000
- Building rent: $30,000
- Insurance: $18,000
- Utilities: $66,000
e. Manufacturing overhead was applied using a rate of 125% of direct labor costs.
f. Goods costing $775,000 were completed during the month.
g. Goods costing $802,000 were sold for $1,463,000. All sales were on credit.
**Required:**
1. Prepare journal entries for all items a through g above. Assume items all sales and purchases were on account.
2. Prepare T-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g.
3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
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