Example Manufacturing Company uses a job order costing system. The following information summarizes its operations related to production for January, its first month of operations.

A. Purchased production materials on account, $85,000.

B. Production materials of $90,000 were requisitioned to the factory for the five jobs started in January and for general factory use as follows:

Job	Materials
Job No. 1001	$15,000
Job No. 1002	14,000
Job No. 1003	11,800
Job No. 1004	20,200
Job No. 1005	22,000
General factory use	7,000
	$90,000

C. Factory labor costs of $71,000 were incurred. The employee time tickets provided the following:

Job	Factory Labor
Job No. 1001	$ 10,000
Job No. 1002	11,750
Job No. 1003	10,250
Job No. 1004	14,800
Job No. 1005	18,200
General factory use	6,000
	$71,000

D. Factory overhead is allocated to jobs at a rate of $50 per machine hour. Machine hours used were:

Job	Machine Hours
Job No. 1001	105
Job No. 1002	110
Job No. 1003	95
Job No. 1004	150
Job No. 1005	120
	580

E. Depreciation on the factory machinery and equipment was $6,500.

F. Factory overhead costs incurred on account were $9,800.

G. Jobs 1001, 1002 and 1004 were completed.

H. Jobs 1001 and 1002 were shipped and the customers were billed $100,000 for job 1001 and $111,000 for job 1002.

REQUIRED:

Part 1: Prepare a schedule summarizing manufacturing costs by job incurred in January. Use the following columns and provide column totals.

Job Direct Materials Direct Labor Factory Overhead Total

Part 2: What are the January 31 balances for each of the following accounts? Support your answers by indicating the jobs in that balance.

Work in Process Inventory

Finished Goods Inventory

Cost of Goods Sold

Part 3: What was cost of goods manufactured for January? (Show supporting work.)

Part 4: What was gross profit for January? (Show supporting work.)

Part 5: Prepare summary journal entries for information a through h given above.