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.