E2-20 (Algo) Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follo (ignore any accounts that are not listed). During January, the company had the following transactions: a. Purchased $63,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number 201 Total Cost 202 Indirect materials $ 11,100 21,800 6,000 $ 38,900 c. Recorded factory payroll costs from labor time tickets that revealed the following: Job Number 201 202 Hours 101 392 Total Cost Factory supervision $ 2,600 10,200 4,700 $ 17,500 d. Applied overhead to production at a rate of $27.00 per direct labor hour for 493 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory utilities Factory insurance Total Cost Description $ 2,000 4,300 Paid in cash 2,700 Factory equipment Incurred but not paid 1,900 Prepaid policy $ 10,900 f. Completed Job 201 and transferred it to Finished Goods Inventory. g. Sold Job 200 for $50,200. Job 202 was still in process at the end of January.
E2-20 (Algo) Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follo (ignore any accounts that are not listed). During January, the company had the following transactions: a. Purchased $63,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number 201 Total Cost 202 Indirect materials $ 11,100 21,800 6,000 $ 38,900 c. Recorded factory payroll costs from labor time tickets that revealed the following: Job Number 201 202 Hours 101 392 Total Cost Factory supervision $ 2,600 10,200 4,700 $ 17,500 d. Applied overhead to production at a rate of $27.00 per direct labor hour for 493 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory utilities Factory insurance Total Cost Description $ 2,000 4,300 Paid in cash 2,700 Factory equipment Incurred but not paid 1,900 Prepaid policy $ 10,900 f. Completed Job 201 and transferred it to Finished Goods Inventory. g. Sold Job 200 for $50,200. Job 202 was still in process at the end of January.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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