Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E2-18 Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had

E2-18 Recording Manufacturing Costs [LO 2-3, 2-4, 2-5]

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed).

During January, the company had the following transactions: (a) Purchased $64,000 worth of materials on account.

(b) Recorded materials issued to production as follows:

Job Number Total Cost
201 $ 10,200
202 21,000
Indirect materials 6,000
$ 37,200

(c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

Job Number Hours Total Cost
201 109 $ 2,400
202 390 10,600
Factory supervision 5,000
$ 18,000

(d) Applied overhead to production at a rate of $29.00 per direct labor hour for 499 actual direct labor hours. (e) Recorded the following actual manufacturing overhead costs:

Item Total Cost Description
Factory rent $ 2,400 Paid in cash
Depreciation 3,400 Factory equipment
Factory utilities 3,500 Incurred but not paid
Factory insurance 1,800 Prepaid policy
$ 11,100

(f) Completed Job 201 and transferred it to Finished Goods Inventory.

(g) Sold Job 200 for $51,700.

Job 202 was still in process at the end of January.

Required: 1. Post the preceding transactions to T-accounts. (Note: Capture the offsetting of debits and credits to other accounts such as Cash, Payables, Accumulated Depreciation, and so on in Miscellaneous Accounts.)

2. Compute the ending balance in the following accounts:

3. Compute the total cost of Jobs 201 and 202 at the end of January.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing University Of Southern Indiano

Authors: Michael C. Knapp

7th Edition

0324658052, 978-0324658057

More Books

Students also viewed these Accounting questions

Question

What magazine and ads did you choose to examine?

Answered: 1 week ago