ALT-JO-COSTING-TI ACCOUNTS RECEIVABLE SCORE: RAW MATERIALS INV 12 ACCOUNTS PAYABLECOST OF GOODS SOLD SALES FACTORY OVERHEAD WORK IN PROCESS INV 101 WAGES PAYABLE DM DM DL DL FO FO TOTAL 0 102 DM PREPAID INSURANCE FINISHED GOODS INV DL FO TOTAL 0 TRANSACTIONS FOR HOLLYWOOD MANUFACTURING Raw materials were purchased for $42,000 on account. 2 Materials are moved to the factory in the amount of $30,000. The indirect materials were $6,000 and the direct materials were $24,000 (The DM were assigned: $6,000 for Job 101: $8,000 for Job 102: an $10,000 for Job 103.) 3 Total labor costs were $42.000. Indirect labor was $4,000. The direct labor of $38,000 was assigned: $11,000 for Job 101: $12,000 for Job 102: and $15,000 for Job 103. 103 4 Factory overhead costs consisted of: EQUIPMENT DM Factory supervision: credit Wages Payable DL Equipment depreciation: credit Accum. Depe. Equip FO Factory utilities: credit Accounts Payable TOTAL Factory insurance: credit Prepaid Insurance Amount 22,000 10,000 6,000 2,000 40,000 ACC. DEPR. EQUIP DR CR ACCOUNTS RECEIVABLE 0 FACTORY OVERHEAD 0 PREPAID INSURANCE RAW MATERIALS INV WORK IN PROCESS INV 0 FINISHED GOODS INV 1 EQUIPMENT 0 ACC. DEPR. EQUIP WAGES PAYABLE ACCOUNTS PAYABLE 0 COST OF GOODS SOLD SALES 5 Hollywood allocates factory overhead on the basis of direct labor cost at the rate of 130% of direct labor cost. 6 Jobs 101 and 102 were completed and moved to Finished Goods 7 Job 101 was sold for $41,000 on account.