The following information reflects Walczak Company’s job order production activities for May.

Walczak’s predetermined overhead rate is 150% of direct labor cost. Costs are allocated to the three jobs worked on during May as follows.

Required 1. Determine the total cost of;

a. The April 30 inventory ofjobs in process.

b. Materials used during May.

c. Labor used during May.

d. Factory overhead incurred and applied during May and the amount of any over- or underapplied overhead on May 31.

e. Each job as of May 31, the May 31 inventories of both goods in process and finished goods, and the goods sold during May.
2. Prepare summarized journal entries for the month to record:

a. Materials purchases (on credit), the factory payroll (paid with cash), indirect materials, indirect labor, and the other factory overhead (paid with cash).

b. Assignment of direct materials, direct labor, and overhead costs to the Goods in Process Inventory account. (Use .separate debit entries for each job.)

c. Transfer of each completed job to the Finished Goods Inventory account.

d. Cost of goods sold.

e. Removal of any underapplied or overapplied overhead from the Factory Overhead account. (Assume the amount is not material.)
3. Prepare a manufacturing statement for May.

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Raw materials purchases... Factory payroll cost...... $16,000 15.400 Overhead costs incurred Indirect materials... 5.000 Indirect labor... 3,500 Other factory overhead 9.500