1. Job Order Costing: Skywalker, Inc. is a specialty droid manufacturer that uses a job order costing system. The following i*formation was given for the month ended 11/30/2020: Job C1-10P Job R2-D2 Job R5-D4 Job C-3PO Job BB-8 Balances on 11/1/2020: Direct materials $0 $11,440 $0 $9,430 $0 Direct labor $0 $19,425 $0 $16,425 $O Factory OH applied $0 $17,160 $0 $14,145 $0 Costs incurred during November: Direct materials used Direct labor used Factory OH applied $8,422 $15,885 ??? $1,930 $3,565 ??? $7,328 $14,066 ??? $0 $0 $0 $11,844 $21,903 ??? . O o O o Job status as of the beginning of the period: As of the beginning of November, only Job R2-D2 was in process and only Job C-3PO was finished. o Jobs C1-10P, R5-D4, and Job BB-8 were all started during November. Beginning balances of inventory accounts as of 11/1/2020: Raw materials inventory, $21,356; Work in Process (WIP) inventory: $48,025 (Job R2-D2) Finished Goods inventory: $40,000 (Job C-3PO) Factory Overhead is applied based on the firm's predetermined overhead rate of 150% of direct materials costs. Raw materials purchased on account during the period, $35,118. Actual Indirect materials used, $3,932. Actual Indirect labor used, $19,435. Other actual overhead costs, $21,000. Job status as of the end of the period: o Jobs C1-10P and R5-D4 are still in process as of the end of the period. Jobs R2-D2 and BB-8 were finished during the period. Jobs R2-D2 and C-3PO were sold to a customer on account during the period for a total of $189,653. . . O 0 PART A: Determine (you must show all your work to receive full credit): 1) The costs assigned to each job cost sheet as of November 30th, 2020. 2) The ending balances of the Raw Materials inventory account, the WIP inventory account, and the Finished Goods inventory account as of November 30th, 2020. You must show your work, such as formulas or T-accounts used to arrive at your answers. 3) The Cost of Goods Manufactured (COGM) and Cost of Goods Sold (COGS) for the period ended 11/30/2020. PART B: Prepare the journal entries the firm would record for the month of November to record the following information (you must use proper journal entry formatting and include a brief description of each entry) 1) Raw materials purchases 2) Direct materials used 3) Direct labor used (Record using Factory Wages Payable) 4) Factory overhead costs applied 5) Indirect materials used 6) Indirect labor used (record using Factory Wages Payable) 7) Other actual factory overhead costs (assume all paid in cash) 8) Transfer of jobs R2-D2 and BB-8 to Finished Goods inventory 9) Revenue from the sale of jobs R2-D2 and C-3PO 10) Cost of Goods Sold for jobs R2-D2 and C-3PO
