Reference no: EM132621220

Question - Eatern and Sons ltd accounts for its manufacturing costs using a job order costing system and has provided the following production data during June 2013

Job Z241 was in process as of 1 June with a cost of $22,000

The purchase of raw materials on credit during the month amounted to $72,000. Raw materials requisitioned were charged to the following.

Job Z241 $17,500

Job Z242 $15,000

Job Z243 $23,500

Indirect materials 9,000

Payroll of $78,000 was incurred. Each worker earns $12,00 per hour.

The factory payroll was distributed as follows:

Job Z241 $21,000

Job Z242 $25,500

Job Z243 $22,500

Indirect labor 8,500

Additional factory overhead costs incurred during the month were $11,200(assume that accounts payable was credited for $8,600 and the rest was for accumulated depreciation of factory equipment).

Factory overhead is applied at $4.60 per direct labor hour

Job Z241 and Z242 were completed and transferred to finished goods

Job Z241 was sold at a mark-up of 50% over cost

The begining raw materials were $22,000

Required -

A. Prepare the general journal entries to record the June 2013 transactions.

B. Determine the balances of raw materials inventory and work in process inventory accounts at the end of June 2013.