E2-20 (Algo) 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 $68,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost $ 10,000 21,700 6,700 $ 38,400 c. Recorded factory payroll costs from labor time tickets that revealed the following: Total Cost Job Number 201 Hours 105 202 390 $ 2,600 10,700 Factory supervision 5,800 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 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.) Raw Materials Inventory Debit Credit Work In Process Inventory Debit Credit 1/1 (a) 42,000 68,000 1/1 38,400 (b) (b) 19,500 31,700 Balance 71,600 Balance 51,200 Finished Goods Inventory Debit Cost of Goods Sold Credit Debit Credit 1/1 29,000 1/1 Balance 0 Show lessA $ 19,100 d. Applied overhead to production at a rate of $28.00 per direct labor hour for 495 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Description Item Factory rent Total Cost $ 3,800 Paid in cash 3,100 Depreciation Factory utilities Factory insurance 2,800 Factory equipment Incurred but not paid 3,400 Prepaid policy $ 13,100 f Completed Job 201 and transferred it to Finished Goods Inventory. g. Sold Job 200 for $50,600. 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: a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold (unadjusted). e. Manufacturing Overhead (Specify if overhead is overapplied or underapplied). 3. Compute the total cost of Jobs 201 and 202 at the end of January. Balance 29,000 Manufacturing Overhead Debit Credit 1/1 Balance 0 Miscellaneous Accounts (Cash, Payables, Debit 1/1 etc.) Credit Required Required Required 1 2 3 Sales Revenue Debit Credit 50,600 (g) 50,600 Balance Required Required Required 1 2 3 Compute the total cost of Jobs 201 and 202 at the end of January. Job Number Total Cost of Job 201 202 Compute the ending balance in the following accounts: a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold (unadjusted). e. Manufacturing Overhead (Specify if overhead is overapplied or underapplied). a. Raw Materials Inventory b. Work in Process Inventory c. Finished Goods Inventory d. Cost of Goods Sold (unadjusted) e. Manufacturing Overhead (Specify if overhead is overapplied or underapplied) Show lessA