Brief Exercises BE2.1 (LO 1), C Dieker Company begins operations on January 1. Because all work is done to customer specifications, the company decides to use a job order cost system. Prepare a flowchart of a typical job order system with arrows showing the flow of costs. Identify the eight transactions. BE2.2 (LO 1), AP During January, its first month of operations, Dieker Company accumulated the fol- lowing manufacturing costs: raw materials purchased $4,000 on account, factory labor incurred $6,000, and factory utilities payable $2,000. Prepare separate journal entries for each type of manufacturing cost (use January 31 for all dates). BE2.3 (LO 2), AP In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used (use January 31 as the date). BE2.4 (LO 2), AP Factory labor information for Dieker Company is given in BE2.2. During January, time tickets show that the factory labor of $6,000 was used as follows: Job 1 $2,200, Job 2 $1,600, Job 3 $1,400, and general factory use $800. Prepare a summary journal entry to record factory labor used (use January 31 as the date). BE2.5 (LO 2), AP Data pertaining to job cost sheets for Dieker Company are given in BE2.3 and BE2.4. Prepare the job cost sheets for each of the three jobs using the format shown in Illustration 2.8 (use Jan- uary 31 as the date). (Note: You may omit the column for Manufacturing Overhead.) BE2.6 (LO 3), AP Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000, direct labor hours 50,000, and machine hours 100,000. Compute the predetermined overhead rate for each activity base. BE2.7 (LO 3), AP During the first quarter, Francum Company incurs the following direct labor costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 70% of direct labor cost (date journal entries as of the end of the month). BE2.8 (LO 4), AP In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold to the customer for $35,000 in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10 (date journal entries as of the end of the month). BE2.9 (LO 4), AP Ruiz Engineering Contractors incurred employee payroll costs of $36,000 ($28,000 direct and $8,000 indirect) on an engineering project. The company applies overhead at a rate of 25% of direct labor cost. Record the entries to assign payroll liabilities and to apply overhead. Assume journal entries are made at the end of the month. BE2.10 (LO 5), AP At December 31, balances in Manufacturing Overhead are Shimeca Company-debit $1,200, Garcia Company-credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. Prepare a flowchart of a job order cost accounting system and identify transactions. Prepare entries for accumulating manufacturing costs. Prepare entry for the assignment of raw materials costs. Prepare entry for the assignment of factory labor costs. Prepare job cost sheets. Compute predetermined overhead rates. Assign manufacturing overhead to production. Prepare entries for completion and sale of completed jobs. Prepare entries for payroll liabilities and operating overhead. Prepare adjusting entries for under- and overapplied overhead.