Reference no: EM131191377
P2-3B Robert Perez is a contractor specializing in custom-built jacuzzis. On May 1, 2014, his ledger contains the following data.
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Raw Materials Inventory
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$30,000
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Work in Process Inventory
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$12,200
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Manufacturing Overhead (debit)
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$2,500
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The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000 Subsidiary data for Work in Process on May 1 include:
Job Cost Sheets
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Job by Customer
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Direct materials
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Direct labor
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Mfg Ovrhd
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Stiner
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$2,500
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$2,000
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$1,400
|
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Alton
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2,000
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1,200
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840
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Herman
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900
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800
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560
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|
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$5,400
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$4,000
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$2,800
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During May, the following costs were incurred:
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(a) Raw materials purchased on account
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$4,000
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(b) Labor paid
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$7,000
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(c) Manufacturing overhead paid
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$1,400
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A summary of materials requisition slips and time tickets for the month of May reveals the following.
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Job by Customer
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Materials Requisition Slips
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Time Tickets
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Stiner
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$500
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$400
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Alton
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600
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1,000
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Herman
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2,300
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1,300
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Smith
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1,900
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2,300
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|
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5,300
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5,000
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General use
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1,500
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2,000
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|
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$6,800
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$7,000
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Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The jacuzzis for customers Stiner, Alton, and Herman were completed during May. Each jacuzzi was sold for $12,000
Instructions
(a)(i)(a) Journalize the May transactions for purchase of raw materials
(a)(i)(b) Journalize the May transactions for factory labor costs.
(a)(i)(c) Journalize the May transactions for manufacturing overhead costs incurred.
(a)(ii)(a) Journalize the May transactions for the assignment of direct materials.
(a)(ii)(b) Journalize the May transactions for the assignment of direct labor.
(a)(ii)(c) Journalize the May transactions for the assignment of overhead to production.
(a)(iii)(a) Journalize the completion of the jobs.
(a)(iii)(b) Journalize the May transactions for the sale of goods.
(b) Post the entries to Work in process inventory.
(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished goods.
(d) Prepare a cost of goods manufactured schedule for May.