Stockman Co. began 2013 with three jobs in process.

During 2013, the following transactions occurred:
1. The firm purchased and paid for $ 542,000 of raw material.
2. Factory payroll records revealed the following:
Indirect labor incurred was $ 54,000.
Direct labor incurred was $ 602,800 and was associated with the jobs as follows:
Job No    Direct Labor Cost
247 ........... $ 17,400
251 ...........      8,800
253 ...........    21,000
254 ........... 136,600
255 ........... 145,000
256 ...........   94,600
257 ........... 179,400
3. Material requisition forms issued during the year revealed the following:
Indirect material issued totaled $ 76,000.
Direct material issued totaled $ 466,400 and was associated with jobs as follows:
Job No    Direct Material Cost
247 ...........   $ 12,400
251 ...........        6,200
253 ...........      16,800
254 ........... $105,200
255 ...........   119,800
256 ...........     72,800
257 ...........   133,200
4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted OH of $ 240,000 and total DL cost of $ 600,000 for 2013. Actual total factory OH costs (including indirect labor and indirect material) for the year totaled $ 244,400.
5. Jobs # 247 through # 255 were completed and delivered to customers, who paid for the goods in cash. The revenue on these jobs was $ 2,264,774.

a. Journalize all preceding events. 

b. Determine the ending balances for the jobs still in process.
c. Determine the cost of jobs sold, adjusted for underapplied or overappliedoverhead.

Transcribed Image Text:

TYPE OF COST Job No. Direct Material Direct Labor Overhead Total 247 251 253 Totals $ 77,200 76,600 145,400 $399,200 $ 91,400 209,800 169,600 $470,800 36,560 83,920 67,840 205,160 470,320 382,840 $188,320 $1.058,320