Juarez Inc. had the following inventories on March 1: Finished Goods ........................... $15,000 Work in Process ...........................

Question:

Juarez Inc. had the following inventories on March 1:
Finished Goods ........................... $15,000
Work in Process ........................... 19,070
Materials ..................................... 17,000
The work in process account controls three jobs:

The following information pertains to March operations:
(a) Materials purchased and received cost $19,000 at terms n/30.
(b) Materials requisitioned for production cost $21,000. Of this amount, $2,400 was for indirect materials; the difference was distributed: $5,300 to Job 621; $7,400 to Job 622; and $5,900 to Job 623.
(c) Materials returned to the storeroom from the factory totaled $600, of which $200 was for indirect materials, the balance from Job 622.
(d) Materials returned to vendors totaled $800.
(e) Payroll of $38,000 was accrued in March.
(f) Of the payroll, direct labor represented 55%; indirect labor, 20%; sales salaries, 15%; and administrative salaries, 10%. The direct labor cost was distributed: $6,420 to Job 621; $8,160 to Job 622; and $6,320 to Job 623.
(g) Factory overhead, other than any previously mentioned, amounted to $9,404.50. Included in this figure were $2,000 for depreciation of factory building and equipment and $250 for expired insurance on the factory. The remaining overhead, $7,154.50, was unpaid at the end of March.
(h) Factory overhead was applied to production at a rate of 80% of the direct labor cost to be charged to the three jobs, based on the labor cost for March.
(i) Jobs 621 and 622 were completed and transferred to the finished goods warehouse,
(j) Both Jobs 621 and 622 were shipped and billed at a gross profit of 40% of the cost of goods sold.
(k) Cash collections from accounts receivable during March were $69,450.
Required:
(1) Prepare job order cost sheets to post beginning inventory data.
(2) Journalize the March transactions with current postings to general ledger inventory accounts and to job order cost sheets.
(3) Prepare a schedule of inventories on March 31.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...