1. Cost of Goods Manufactured and Sold. For May, Jimbo Inc. had cost of goods manufactured equal to $90,000; direct materials used $30,000; cost of goods sold, $100,000; direct labour, $38,000; purchases of materials, $40,000; cost of goods available for sale, $125,000; and total factory labour, $48,000. Work in process was $25,000 on May 1 and $15,000 on May 31. The company uses a single materials account for direct and indirect materials.

Required: Prepare the following:

(1) A cost of goods sold statement. For brevity, show single-line items for factory overhead and direct materials used.

(2) Summary general journal entries to record:

(a) Purchase of materials on account

(b) Use of materials, including direct materials of 1,000

(c) Accrual of factory payroll, including indirect labour of $10,000 (use a payroll clearing account)

(d) Distribution of factory labour cost

(e) Transfer of completed work to finished goods

(f) Sales on account, at a mark-up equal to 100% of production cost