On March 1, Mangan Company had the following balances in its inventory accounts:

Work in process is made up of three jobs with the following costs:

During March, Mangan experienced the transactions listed below:

a. Materials purchased on account, $27,000.

b. Materials requisitioned: Job 33, $12,500; Job 34, $11,200; and Job 35, $5,500.

c. Job tickets were collected and summarized: Job 33, 250 hours at $20 per hour; Job 34, 275 hours at $15 per hour; and Job 35, 140 hours at $12 per hour.

d. Overhead is applied on the basis of direct labor cost.

e. Actual overhead was $7,618.

f. Job 34 was completed and transferred to the finished goods warehouse.
g. Job 34 was shipped, and the customer was billed for 160 percent of the cost.

Required:
1. Prepare job cost sheets for Jobs 33, 34, and 35. Post the beginning inventory data, and then update the cost sheets for the March activity.
2. Prepare journal entries for the March transactions.
3. Prepare a schedule of inventories on March 31.

Transcribed Image Text:

Raw Materials $12,000 Work in Process 19,278 Finished Goods 20,000