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 $66,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number Total Cost 201 202 Indirect materials $ 11,900 21,500 6,500 $ 39,900 c. Recorded factory payroll costs from labor time tickets that revealed the following: Job Number 201 202 Hours 103 389 Total Cost Factory supervision $ 2,600 10,400 4,300 $ 17,300 d. Applied overhead to production at a rate of $30.00 per direct labor hour for 492 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Item Factory rent Factory utilities Depreciation: Factory insurance Total Cost $ 2,700 4,100 4,200 2,500 $ 13,500 Description Paid in cash Factory equipment Incurred but not paid Prepaid policy f. Completed Job 201 and transferred it to Finished Goods Inventory. g. Sold Job 200 for $52,000. 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 1/1 Balance Debit Debit 1/1 Balance Raw Materials Inventory 38,000 Credit Debit 1/1 Finished Goods Inventory 25,000 Balance Work in Process Inventory 17,500 Credit Cost of Goods Sold Credit Debit Credit 1/1 Manufacturing Overhead Debit Credit 1/1 Balance Miscellaneous Accounts (Cash, Payables, etc.) Debit 1/1 Credit Balance Sales Revenue Debit Credit Balance