d Byte PROBLEMS OBJECTIVE 45 wblem 5.26 Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold ring May, the following transactions were completed and reported by Jerico Company: Materials purchased on account. $60,100. Materials issued to production to fill job-order requisitions: direct materials, $50,000: indirect materials, $8,800. Payroll for the month direct labor, $75,000; indirect labor, S36,000; administrative, $28,000; sales, S19,000. Depreciation on factory plant and equipment, $10.400. Property taxes on the factory accrued during the month, S1,450. Insurance on the factory expired with a credit to the prepaid insurance account, S6,200. Factory utilities, S5,500. h. Advertising paid with cash, $7.900. Depreciation on ollice equipment, S800; on sales vehicles. $1,650. i Legal fees incurred but not yet paid for preparation of lease agreements, S750. Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4.000 direct labor hours were worked during the month. 1. Cost of jobs completed during the month, S160,000. (continued) Product and Service Costing: Job-Order System Chapter 5 ces in its inventory accounts. cocess Inventory The company also reported the following beginning balances i $ 7,500 Materials Inventory 37,000 Work-in-Process Inventory 50,000 Finished Goods Inventory Required: 1. Prepare journal entries to record the transactions occurring in May. 2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process I and Finished Goods Inventory. Post all relevant entries to these accounts. 3. Prepare a statement of cost of goods manufactured. 4. If the overhead variance is all allocated to cost of goods sold, by how much will goods sold decrease or increase? much will cost of Dared Costing, Bid Prices