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Information on Kwon Manufacturings activities for its first month of operations follows: Purchased $100,400 of raw materials on credit. Materials requisitions show the following materials

Information on Kwon Manufacturings activities for its first month of operations follows:

  1. Purchased $100,400 of raw materials on credit.
  2. Materials requisitions show the following materials used for the month.

Job 201 $ 48,600
Job 202 24,000
Total direct materials 72,600
Indirect materials 9,020
Total materials used $ 81,620

  1. Time tickets show the following labor used for the month.

Job 201 $ 39,600
Job 202 13,000
Total direct labor 52,600
Indirect labor 24,600
Total labor used $ 77,200

  1. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
  2. Transferred Job 201 to Finished Goods Inventory.
  3. (1) Sold Job 201 for $164,960 on credit. (2) Record cost of goods sold for Job 201.
  4. Incurred the following actual other overhead costs for the month.

Depreciation of factory equipment $ 32,400
Rent on factory building (payable) 540
Factory utilities (payable) 840
Expired factory insurance 3,400
Total other factory overhead costs $ 37,180

1. Prepare a job cost sheet for Job 201 and for Job 202 for the month. 2. Compute gross profit on the sale of Job 201.

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