Question
1. Job Order Costing (7pts): Skywalker, Inc. is a specialty droid manufacturer that uses a job order costing system. The following information was given
1. Job Order Costing (7pts): Skywalker, Inc. is a specialty droid manufacturer that uses a job order costing system. The following information was given for the month ended 9/30/2022: Job C1-10P Job R2-D2 Job R5-D4 Job C-3PO Job BB-8 Beg. Bal. on 9/1/2022: Direct materials Direct labor Factory OH applied |S|SS $4,150 $8,000 $0 |SSIS $0 $0 $0 $0 $9,600 $0 $0 $0 Costs incurred during the month of September: Direct materials used $11,920 $2,080 $19,320 $7,470 $9,250 Direct labor used $15,400 $5,800 $25,200 $6,000 Factory OH applied ??? ??? ??? ??? $11,600 ??? Job status as of the beginning of the period: o As of the beginning of September 2022, only Job R2-D2 was in process. The other four jobs were started during September 2022. Beginning balances of inventory accounts as of 9/1/2022: Raw materials inventory: $35,210 Work in Process (WIP) inventory: $21,750 (from Job R2-D2 which was already in process) Finished Goods inventory: $0 Factory Overhead is applied based on the firm's predetermined overhead rate of 120% of direct labor costs. Raw materials purchased on account during the period, $56,420, Actual overhead costs for the period are as follows - Actual Indirect materials used: $2,035. Actual Indirect labor used, $13,800. Other actual overhead costs, $60,155. Job status as of the end of the period: Jobs C-3PO and BB-8 are still in process as of the end of the period. o Jobs C1-10P, R2-D2, and R5-D4 were finished during the period. Job R2-D2 was sold to a customer on account during the period for a total of $79,100. PART A (0.5pts): Calculate the total amount of Factory Overhead costs Applied during September 2022. You must show all of your work to receive full credit. PART B (3pts; 1pt each account balance): Determine the ending balances as of September 30, 2022 of 1) the Raw Materials Inventory account (HINT: don't forget to also subtract indirect materials used!), 2) the WIP inventory account, and 3) the Finished Goods inventory account. You must show your work, such as formulas or T-accounts used to arrive at your answers. PART C (3.5pts; 0.5pts each entry): Prepare the journal entries the firm would record for the month of September to record the following information (you must use proper journal entry formatting and include a brief description of each entry. Use 9/XX/2022 as the date for all) 1) Raw materials purchases 2) Direct materials used 3) Direct labor used (Record using Factory Wages Payable) 4) Factory overhead costs applied 5) Transfer of costs of all jobs finished during the period from WIP inventory to Finished Goods inventory 6) Revenue from the sale of all jobs sold during the period 7) Cost of Goods Sold (COGS) for all jobs sold during the period
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