3 WalkLikeYou, Corp is a specialty athletic shoe manufacturer which uses a job order costing system The following information below is given for WalkLikeYou As of January 31 As of February 28 Inventory account balances Raw materials inventory $42,000 $30,000 Work in process inventory $9,200 $20,600 Finished goods $56,000 $33,500 Additional information for the month ended February 28 Raw materials purchased $198,000 Factory payroll $150,000 Actual factory overhead costs Indirect materials $15,000 Indirect labor $34,500 Other overhead costs $13,500 Sales $1,100,000 Predetermined overhead rate (based on direct labor costs) 55 of DL costs Compute the following amounts for the month of February You must show all of your work, either using formulas or using T accounts Cost of direct materials used Total manufacturing costs Cost of goods manufactured Cost of goods sold (ignore effects of underapplied overapplied overhead) Gross profit Overapplied or underapplied overhead Job 306 Job 307 Job 308 Total Answer Balances on March 31 Direct Materials 29000 35000 64000 Direct Labor 20000 18000 38000 Applied factory overhead 10000 9000 19000 WIP inventory balance on March 31 59000 62000 121000 a 1 Costs during April Direct Materials 135000 220000 100000 455000 a 2 Direct Labor 85000 150000 105000 340000 a 3 Applied factory overhead 42500 75000 52500 170000 a 4 Total costs added in April 262500 445000 257500 965000 Total costs assigned as of April 30 321500 507000 257500 1086000 Answer a 5 a 5 a 5 4 Journal entries Goal, Goal, Goal, Inc is a specialty soccer cleat manufacturer that uses a job order costing system Prepare journal entries to record the following information Raw Materials During the current month, the firm purchased $77,000 in raw materials on account The firm used $56,500 in direct materials and used $10,300 as indirect materials (HINT there are 3 separate journal entries to record for materials) Labor During the current month, the firm had a factory payroll of $35,000 which will not be paid until the following period Of the $35,000, $29,000 was used as direct labor and the remaining $6,000 was classified as indirect labor (HINT1 there are 2 separate journal entries to record for labor HINT2 use the Factory Wages Payable account) Factory OH Assume that factory OH costs are applied at 90 of direct labor costs according to the firms predetermined OH rate Record the journal entry for overhead applied during the period

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3.. WalkLikeYou, Corp. is a specialty athletic shoe manufacturer which uses a job order costing system. The following information below is given for WalkLikeYou: As

3.. WalkLikeYou, Corp. is a specialty athletic shoe manufacturer which uses a job order costing system. The following information below is given for WalkLikeYou:

	As of January 31	As of February 28
Inventory account balances:
Raw materials inventory	$42,000	$30,000
Work in process inventory	$9,200	$20,600
Finished goods	$56,000	$33,500

Additional information for the month ended February 28:
Raw materials purchased		$198,000
Factory payroll		$150,000
Actual factory overhead costs:
Indirect materials		$15,000
Indirect labor		$34,500
Other overhead costs		$13,500
Sales		$1,100,000
Predetermined overhead rate (based on direct labor costs) = 55% of DL costs

Compute the following amounts for the month of February. You must show all of your work, either using formulas or using T-accounts.

Cost of direct materials used.
Total manufacturing costs.
Cost of goods manufactured.
Cost of goods sold.(ignore effects of underapplied / overapplied overhead)
Gross profit.
Overapplied or underapplied overhead.

	Job 306	Job 307	Job 308	Total	Answer
Balances on March 31:
Direct Materials	29000	35000		64000
Direct Labor	20000	18000		38000
Applied factory overhead	10000	9000		19000
WIP inventory balance on March 31	59000	62000		121000	a.1
Costs during April:
Direct Materials	135000	220000	100000	455000	a.2
Direct Labor	85000	150000	105000	340000	a.3
Applied factory overhead	42500	75000	52500	170000	a.4
Total costs added in April	262500	445000	257500	965000
Total costs assigned as of April 30	321500	507000	257500	1086000
Answer	a.5	a.5	a.5

4. Journal entries: Goal, Goal, Goal, Inc. is a specialty soccer cleat manufacturer that uses a job order costing system. Prepare journal entries to record the following information:

Raw Materials During the current month, the firm purchased $77,000 in raw materials on account. The firm used $56,500 in direct materials and used $10,300 as indirect materials (HINT: there are 3 separate journal entries to record for materials).
Labor - During the current month, the firm had a factory payroll of $35,000 which will not be paid until the following period. Of the $35,000, $29,000 was used as direct labor and the remaining $6,000 was classified as indirect labor (HINT1: there are 2 separate journal entries to record for labor; HINT2: use the Factory Wages Payable account).
Factory OH Assume that factory OH costs are applied at 90% of direct labor costs according to the firms predetermined OH rate. Record the journal entry for overhead applied during the period.