homework chapter 20

Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $26,000, direct labor $15,600, and manufacturing overhead $20,800. As of January 1, Job 49 had been completed at a cost of $117,000 and was part of finished goods inventory. There was a $19,500 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $158,600 and $205,400, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $117,000 on account. 2. Incurred factory labor costs of $91,000. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $15,600; and various other manufacturing overhead costs on account $20,800. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $13,000 $6,500 51 50,700 32,500 52 39,000 26,000 5. Assigned indirect materials of $22,100 and indirect labor of $26,000. Prepare the journal entry to record the completion of any job(s) during the month. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit T II IMA I Marin Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Marin decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $15 per hour. An audio system takes 7 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,960 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,760. m Factory janitorial costs are $2,190 monthly. Advertising costs for the audio system will be $9,160 per month. The factory building depreciation is $6,120 per year. Property taxes on the factory building will be $9,000 per year. (b) Compute the cost to produce one audio system. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per system $ ta