1.

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,000 of indirect materials and $11,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301
Direct materials	$10,200
Direct labor	8,000
Factory overhead	6,080
Total	$24,280

Job 302
Direct materials	$21,000
Direct labor	15,400
Factory overhead	11,704
Total	$48,104

Job 303
Direct materials	$23,000
Direct labor	18,000
Factory overhead

Job 304
Direct materials	$14,200
Direct labor	12,200
Factory overhead

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.

	A. Direct and indirect materials used.
	B. Direct and indirect labor used.
	C. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
	D. Completion of Jobs 301 and 302.

2.

Decision Making with Job Order Costs

Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows:

Date	Job No.	Product	Quantity	Amount
Jan. 2	1	TT	520	$16,120
Jan. 15	22	SS	1,610	20,125
Feb. 3	30	SS	1,420	25,560
Mar. 7	41	TT	670	15,075
Mar. 24	49	SLK	2,210	22,100
May 19	58	SLK	2,550	31,875
June 12	65	TT	620	10,540
Aug. 18	78	SLK	3,110	48,205
Sept. 2	82	SS	1,210	16,940
Nov. 14	92	TT	750	8,250
Dec. 12	98	SLK	2,700	52,650

a. On your own paper, develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Then, determine Alvarez Manufacturing Inc.'s cost performance over time for the three products. Round all answers to the nearest cent.

Job No.			Unit Cost
1			$
22
30
41
49
58
65
78
82
92
98