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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:
- Purchased $100,400 of raw materials on credit.
- 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 |
- 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 |
- Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
- Transferred Job 201 to Finished Goods Inventory.
- (1) Sold Job 201 for $164,960 on credit. (2) Record cost of goods sold for Job 201.
- 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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