ACC378 Cost Accounting Assignment CH5 Perry Company employs a job-order costing system. Only three jobs-Job #205, Job # 206, and Job #207- were worked on during January and February. Job #205 was completed February 10; the other two jobs were still in production on February 28, the end of the company's operating year. Job cost sheets on the three jobs follow: Job Cost Sheet Job #206 Job #205 Job #207 Totals January costs incurred: Direct material $16,500 13,000 20,800 $ 9,300 7,000 11,200 24 Direct labor Manufacturing overhead February costs incurred: Direct materials 21,300 10,000 8,200 6,000 4,000 Direct labor Manufacturing overhead Totals The following additional information is available: Manufacturing overhead is assigned to jobs on the basis of direct labor cost. a. b. Balances in the inventory accounts at January 31-were as follows: $40,000 Raw Material Work in Process Finished Goods 85,000 Required: Prepare T-accounts for Raw Material, Work in Process Inventory, Finished Goods Inventory. and Manufacturing Overhead Control. Enter the January 31 inventory balances given previously; in the case of Work in Process Inventory, compute the January 31 balance and enter it into the Work in Process Inventory T-account. a. Raw Materials Work in Process Inventory Inventory BB BB Finished Goods Manufacturing Overhead Control Inventory BB b. Prepare journal entries for February as follows: 1. Prepare an entry to record the issue of materials into production and post the entry to appropriate T-accounts. (In the case of direct material, it is not necessary to make a separate entry for each job.) Indirect materials used during February totaled $4,000. Account Titles & Explanation Ref Debit Credit Date 2. Prepare an entry to record the incurrence of labor cost and post the entry to appropriate T-accounts. (In the case of direct labor, it is not necessary to make a separate entry for each job.) Indirect labor cost totaled $8,000 for February. Credit Ref Debit Account Titles & Explanation Date 3. Prepare an entry to record the incurrence of $19,000 in various actual manufacturing overhead costs for February (credit Accounts Payable). Credit Ref Debit Account Titles & Explanation Date C. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Using this rate, prepare a journal entry to record the application of overhead cost to jobs for February (it is not necessary to make a separate entry for each job). Post this entry to appropriate T-accounts. Account Titles & Explanation Date Ref Debit Credit d. As stated earlier, Job #205 was completed during February. Prepare a journal entry to show the transfer of this job off of the production line and into the finished good warehouse. Post the entry to appropriate T-accounts. Account Titles & Explanation Date Ref Debit Credit e. Determine the balance at February 28 in the Work in Process inventory account. How much of this balance consists of the cost of Job #206? Job #207? JOB #205 JOB #207 JOB #206 Beg WIP Direct Mat Direct Labor Factory Overhead Totals