Pharoah Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,000,direct labor $10,800, and manufacturing overhead $14,400. As of January 1, Job 49 had been completed at a cost of $81,000 and waspart of finished goods inventory. There was a $13,500 balance in the Raw Materials Inventory account on January 1.During the month of January, Pharoah Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50were sold on account during the month for $109,800 and $142,200, respectively. The following additional events occurred during themonth.1.Purchased additional raw materials of $81,000 on account.2.Incurred factory labor costs of $63,000.Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,800; and various othermanufacturing overhead costs on account $14,400.3.4.Assigned direct materials and direct labor to jobs as follows.Job No.Direct MaterialsDirect Labor50$9,000$4,5005135,10022,5005227,00018,0005.Assigned indirect materials of $15,300 and indirect labor of $18,000.Calculate the predetermined overhead rate for 2022, assuming Pharoah Company estimates total manufacturing overhead costsof $756,000, direct labor costs of $630,000, and direct labor hours of 18,000 for the year.Predetermined overhead rate120 Open Job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the Job cost sheet for Job 50. Post allcosts to the job cost sheets as necessary.Job No. 50DateDirect MaterialsDirect LaborManufacturingBeg.Jan.%2$Cost ofcompleted jobDirectmaterialsDirect laborManufacturingoverheadTotal costJob No. 51DateDirect MaterialsDirect LaborManufacturinsJan.Cost ofcompleted jobDirectmaterialsDirect laborManufacturingoverheadTotal costJob No. 52DateDirect MaterialsManufacturing OverheadDirect LaborJan.$2$Prepare the Journal entry to record the completion of any Job(s) during the month. (List all debit entrlesbefore credit entries. Credit account titles are automaticalIly indented when amount is entered.Do not Indent manually.)Account Titles and ExplanationDebitCrediteTextbook and MediaList of AccountsPrepare the journal entries to record the sale of any job(s) during the month. (List all debit entries beforecredit entries. Credit account titles are automatically indented when amount is entered. Do notindent manually.)No.Account Titles and ExplanationDebitCredit(1)(To record sale of jobs)(2)(To record cost of jobs)cTextbook and MediaList of AccountsWhat is the balance in the Finished Goods Inventory account at the end of the month? (Hint: Use a T-account forFinished Goods Inventory.) What does this balance consist of?Finished Goods Inventory

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Description: Pharoah Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct mate

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Pharoah Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,000, direct labor $10,800, and manufacturing overhead $14,400. As of January 1, Job 49 had been completed at a cost of $81,000 and was part of finished goods inventory. There was a $13,500 balance in the Raw Materials Inventory account on January 1. During the month of January, Pharoah Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $109,800 and $142,200, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $81,000 on account. 2. Incurred factory labor costs of $63,000. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,800; and various other manufacturing overhead costs on account $14,400. 3. 4. Assigned direct materials and direct labor to jobs as follows.

Pharoah Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,000, direct labor $10,800, and manufacturing overhead $14,400. As of January 1, Job 49 had been completed at a cost of $81,000 and was part of finished goods inventory. There was a $13,500 balance in the Raw Materials Inventory account on January 1. During the month of January, Pharoah Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $109,800 and $142,200, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $81,000 on account. 2. Incurred factory labor costs of $63,000. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,800; and various other manufacturing overhead costs on account $14,400. 3. 4. Assigned direct materials and direct labor to jobs as follows.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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