209 Completing the Cost Cycle Chapter 8 Complete the job cost sheet presented in the Study Guide/Working Papers. 8-4B. Learning Objectives 1, 3, 5. Recording and Posting Transactions. Boswell Company's ledger contained the following account balances on May 1, 19x3: $31,000 22,500 20,800 Work in Process Inventory Finished Goods Inventory May transactions a. Purchased materials on account, $32,000. b. Materials requisitioned to production as follows: direct, $27,200, indirect, $5,100. c. Factory wages totaled $36,000, deductions were made as follows: FICA-OASDI, HIP 1.45%; federal income taxes, 20%, group health insurance, s601. 6.2%; FICA (All wages were subject to OASDL.) d. Labor charged to production: direct, $25,600, indirect, $9,800. e. Paid for repairs, $345 f. Recorded depreciation as follows: building, $900, equipment, $600. g. Recorded employer payroll taxes on May wages: FICA OASD, 6.2%) FICA-HI, 1.4596, FUTA, 0.8%, suma, 2.7%. h. Factory insurance expired, $230. i. Accrued property taxes, $230. Paid for various factory overhead costs, $1,250 k. Factory overhead applied to production at 80% of direct labor cost. 1. Cost of jobs completed during the month, $63,400. m. Goods costing $58,600 to manufacture were sold on account for $72,500. Required: 1. Open general ledger accounts for Raw Materials Inventory 121, Work in Process Inventory 122, Finished Goods Inventory 123, Sales 411, Cost of Gods Sold 415, Factory Payroll Clearing 500, and Factory Overhead Control, 511 2. Enter the balances of the manufacturing accounts given at the beginning of the problem. 3. Record Boswell's May transactions. 4. Post to the selected accounts opened in number 1. 5. Prepare a statement of cost of goods manufactured. 6. Prepare a schedule of factory overhead costs. 7. Prepare an income statement for the month, assuming selling expenses of $12,800 general expenses of $12,200, and an income tax rate of 34%