Radical Jets produces and sells custom built jets for corporate and personal use. The following information was found in the general ledger:
Account............................................................ Beginning Balance
Materials inventory................................................. $50,000
Goods in process.................................................. $200,000
Finished Goods................................................... $ 325,000
Current jobs:

Factory overhead is applied based on direct labor costs. The company estimates that factory overhead is $136,500.
Required
1. Record the entry for the purchase of $34,000 in materials on account.
2. Record the entry for the requisition of materials.
3. Record the entry for labor.
4. Record the application of factory overhead.
5. Record the completion of jobs: 2145, 2146, and 2147.
6. Record the sale of job 2145 for $50,000.
7. What are the ending balances for the three inventory accounts?

Transcribed Image Text:

Total Costs Direct Labor Job No. Direct Materials Factory Overhead $9,000 $12,000 2145 $8,000 $10,000 2146 2147 $7,500 $9,000 2148 $6,000 $7,500 $5,000 2150 $7,000 $3,600 $4,300 Indirect Totals