Christopher's Custom Cabinet Company uses a job order cost system with on plied 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 6,000 20,000 The following transactions occurred during January (a) Purchased materials on account for $27.300 (by issued materials to production totaling $21,200, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials (c) Payroll costs totaling $18,000 were recorded as follows: $12,000 for assembly workers 2.100 for factory supervision 2.700 for administrative personnel 1,800 for sales commissions Recorded depreciation: $4,100 for machines, $1,500 for the copier used in the administrative office () Recorded $1,800 of expired insurance Forty percent was insurance on the manufacturing facility with the remainder classified as an administrative expense Paid $4.700 in other factory costs in cash. (9) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. m Completed al jobs but one; the job cost sheet for this job shows $2,500 for direct materials, $2,100 for direct labor, and $4.200 for applied overhead Sold jobs costing $50,100. The revenue earned on these jobs was $65.130. 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 dollar amounts when posting to the t-accounts.) a Raw Materials Inventory. b. Work in Process Inventory c. Finished Goods Inventory d. Cost of Goods Sold e Seling, General, and Administrative Expenses 1. Sales Revenue 9. Other accounts (Cash, Payables, etc.). Beg. Bal. (a) Raw Materials Inventory 16,500 27,300 21,200 [(b) 22,600 Beg. Bal. (6) (C) (9) Work in Process Inventory 6,800 19.080 12,000 24,000 53,080 (h) 8 ,800 End. Bal. End. Bal Cost of Goods Sold Finished Goods Inventory 20,800 Beg. Bal Beg. Bal. (h) 501007 50, 1000) 29,300 End. Ral End. Bal. 50,100 Manufacturing Overhead Selling, General, and Administrative Expenses Beg Bal. Beg. Bal (d) End. Bal End. Bal. Sales Revenue Other Accounts (Cash, Payables, etc.) Beg Bal Beg Bal 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 $16.500 6,800 20,800 The following transactions occurred during January (a) Purchased materials on account for $27.300. (b) Issued materials to production totaling $21,200, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials (c) Payrol costs totaling $18,600 were recorded as follows $12,000 for assembly workers 2.100 for factory supervision 2,700 for administrative personnel 1,800 for sales commissions (d) Recorded depreciation: 54.100 for machines, $1,500 for the copier used in the administrative office. (o) Recorded $1,800 of expired insurance Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. in Paid $4,700 in other factory costs in cash. 19) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. th Completed all jobs but one; the job cost sheet for this job shows $2.500 for direct materials, 2.100 for direct labor, and $4,200 for applied overhead. Sold jobs costing $50,100. The revenue earned on those jobs was $65.130. 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 dollar amounts when posting to the t-accounts.) a. Raw Materials Inventory. b. Work in Process Inventory c. Finished Goods Inventory. d. Cost of Goods Sold e. Selling. General, and Administrative Expenses 1. Sales Revenue. g. Other accounts (Cash, Payables, etc.)
