26-2A

Problem 26-2A Objective: To record a full job order cost accounting cycle Miracle Manufact the following transactions for January 20X1 20x1 uring Company uses a job order cost accounting system and shows raw materials on account, $197,000. Of this amount, $157,000 was for Material A and the rest was for Material B (factory supplies). Issued materials to production, $125,000. Of the materials issued, $15,000 was Material B. Of the direct materials issued, $60,000 was for Job 1 (1,000 10 units) and $50,000 was for Job 2 (2,000 units). Distributed the semimonthly payroll of $100,000 as follows: Job 1, $50,000; Job 2, $20,000; indirect labor, $10,000; sales, $12,000; office, $8.000. Recorded the following factory overhead expenses Utilities (paid in cash) Depreciation of factory equipment insurance expired Repairs (paid in cash) Payroll taxes (credit Payroll Taxes Payable)18,000 15 31 1,000 1,000 500 20,000 31 Distributed the semimonthly payroll. It was identical to the payroll of January 15, except that Job I used $10,000 and Job 2 used $60,000. 31 Applied factory overhead to production at 50% of direct labor costs. 31 Completed Job 1 and transferred it to the finished goods stockroom as Product J. (Total the job sheet to find the cost.) 31 Sold 50 units of Product J on credit. The sales price per unit was $200 31 Closed the amount of overapplied or underapplied overhead Directions: 2. Post to the following general ledger accounts: Raw Materials Inventory (108), 3. Post to the following subsidiary records: Material A, Material B, Job 1, and Job 2. ion in general journal form Mlaterials Inveory (108). Work-in-Process Inventory (109), Finished Goods Inventory (110), Cost of Goods Sold (440), and Factory Overhead Control (470). er all posting is complete, verify the balances of these records against the genenal ledger controlling accounts