CH. 2 Q. 5

Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2016 follow Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $15,700 7,000 The following transactions occurred during January (a) Purchased materials on account for $27,900 (b) Issued materials to production totaling $21,000,90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials (c) Payroll costs totaling $18,200 were recorded as follows: $11,900 for assembly workers 1,700 for factory supervision 1,300 for administrative personnel 3,300 for sales commissions Recorded depreciation $5,000 for machines, $1,000 for the copier used in the administrative office. (o) Recorded $1,100 of expired insurance. Forty percent was insurance on the manufacturing facility, with the nemainder dlassed as an administrative expense. Pad S5,800 in cher factory costs in cash. al Applied manufacturing overhead at a rate of 200 percent of direct labor cost h) Completed all jobs but one, the job cost sheet for this job shows $2.400 for direct materials, $2.100 for direct labor, and $4,200 for applied overhead (0) Sold jobs costing $51,300. The revenue eamed on these jobs was $66,690 Required 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post all amounts separately Do not combine/add any dolar amounts when posting to the t-accounts a. Raw Materials Iwentory b. Work in Process Inventory c. Finished Goods Inventory d. Cost ol Goods Sold e. Seling. General, and Administrative Expenses Sales Revenue g. Other accounts (Cash, Paryables, etc.) 3 5 8