Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials.

On May 4, the company began working on two techno presses: Job 102 for Worldwide Company and Job 103 for Reuben Company.
Required
Using Exhibit as a guide, prepare Job cost sheets for Jobs 102 and 103. Using Exhibit as a guide, prepare materials ledger cards for Material M, Material R, and paint. Enter the beginning raw materials inventory dollar amounts for each of these materials on their respective ledger cards. Then, follow the instructions in this list of activities.
a. Purchased raw materials on credit and recorded the following information from receiving reports and invoices.
Receiving Report No. 426, Material M, 250 units at $250 each.
Receiving Report No. 427, Material R. 90 units at $180 each.
Instructions: Record these purchases with a single journal entry. Enter the receiving report information on the materials ledger cards.
b. Requisitioned the following raw materials for production.
Requisition No. 3S, for Job 102, 135 units of Material M.
Requisition No. 36, for Job 102, 72 units of Material R.
Requisition No. 37, for Job 103, 70 units of Material M.
Requisition No. 38, for Job 103, 38 units of Material R.
Requisition No. 39, for IS units of paint.
Instructions: Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets. Enter the indirect material amount on the materials ledger card. Do not record a journal entry at this time.
c. Received the following employee time tickets for work in May.
Time tickets Nos. I to 10 for direct labor on Job 102, $90,000.
Time tickets Nos. 11 to 30 for direct labor on Job 103, $65,000.
Time tickets Nos. 31 to 36 for equipment repairs, $19,250.
Instructions: Record direct labor from the time tickets on the job cost sheets. Do not record a journal entry at this time.
d. Paid cash for the following items during the month: factory payroll, $174,250, and miscellaneous overhead items, $102,000 Use the time tickets to record the total direct and indirect labor costs.
Instructions: Record these payments with journal entries.
e. Finished Job 102 and transferred it to the warehouse. The company assigns overhead to each job with a predetennined overhead rate equal to 80% of direct labor cost.
Instructions: Enter the allocated overhead on the cost sheet for Job 102, fill in the cost summary section of the cost sheet, and then mark the cost sheet "Finished?' Prepare a journal entry to record the job's completion and its transfer to Finished Goods.
f. Delivered Job 102 and accepted the customer's promise to pay $400,000 within 30 days.
Instructions: Prepare journal entries to record the sale of Job 102 and the cost of goods sold.
g. Applied overhead to Job 103 based on the job's direct labor to date.
Instructions: Enter overhead on the job cost sheet but do not make a journal entry at this time.
h. Recorded the total direct and indirect materials costs as reported on all the requisitions for the month.
Instructions: Prepare a journal entry to record these costs.
i. Recorded the total overhead costs applied to jobs.
Instructions: Prepare a journal entry to record the allocation of these overhead costs.
j. Compute the balance in the Factory Overhead account as of the end of May.

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Material M Material R Paint Total cost. 95 units @ 18017,100 55 units 754,125 $71.225