Job Order Problem Step \#1 - Complete the journal entries for the period below, making sure to refer to the provided beginning trial balance/chart of accounts for the listing of account names usediby the business. Make sure to complete the job cost sheets below as you work through the journal entries to ensure all costs of each job are appropriately accumulated during the period. Note: Job \#107 is the only job in Work in Process Inventory on 12/1/21. Finished Goods Inventory consists of what is left of Job \#106. A blank job cost sheet is attached for Job \#108, a job you will begin this period. \#1 - Received $49,000 from customers paying on their accounts from sales made during the past accounting period. \#2. - On December 1, raw materials were purchased on account from Smith Co. for $213,500. \#3 - Requisitioned raw materials from the warchouse for Job #107 - Total $62,000. H4 - On 12/16 a partial payment of $113,500 was made on the materials purchased in transaction \#2 and a 90 -day, 5% note payable for the balance was issued. 45 - Reauisitioned raw materials from the warehouse for Job #108 - Total $75,500. H6 - Direct labor for the month was used as follows: Job#107$76,000Job#108-$91,000 The direct labor employees were paid in cash (no withholdings). \#7 - Paid $63,800 for indirect labor. (No withholdings.) #8 - Other indirect costs of production were $47,500 for the period, with half paid in cash and half placed on account. 49 - Paid administrative salaries for the month of $15,500 and sales salaries of 57,500 . (No withholdings.) \#10 - Received and paid the utility bill of $2,400. The company determined that $1,800 related to the factory and $600 to selling and administrative activities. \#11 - Estimated property taxes for the month at $400. Allocate $250 to the factory and $150 to selling and administrative activities. \#12 - Prepare the entry to accrue interest on the note to Smith Company on 12/31. H13 - Prepare adjusting entries for depreciation for one month. Use straight-line depreciation and no salvage value (refer to the chart of accounts/trial balance for the historical cost of each). \#14 - Factory overhead is applied to production at 75% of direct labor dollars. \#15 - Job \#107 is complete and ready for sale. Prepare the necessary entry to transfer the cost of the job. \#16 - The remainder of Job #106 and 1,200 units of Job #107 are sold for cash of $271,300. Prepare the necessary entry (or entries). \#17 - If there is any over or underapplied manufacturing overhcad, close the amount into Cost of Goods Sold. Step \#2 - Answer the following questions regarding the company's production during the current accounting period. 1. During the period the company purchased $213,500 of raw materials. How much, in dollars, of raw materials were used in production during the current period? 2. Give one reason why a company would use a predetermined overhead application rate rather than apply the actual amount of factory overhead incurred? 3. You were asked to close the over or underapplied overhead into the cost of goods sold. Explain another way to dispose of the under or overapplied overhead. Lab \#2 - Chaoter 12 Job Order Problem Step \#1 - Complete the journal entries for the period below, making sure to refer to the provided beginning trial balance/chart of accounts for the listing of account names usediby the business. Make sure to complete the job cost sheets below as you work through the journal entries to ensure all costs of each job are appropriately accumulated during the period. Note: Job \#107 is the only job in Work in Process Inventory on 12/1/21. Finished Goods Inventory consists of what is left of Job \#106. A blank job cost sheet is attached for Job \#108, a job you will begin this period. \#1 - Received $49,000 from customers paying on their accounts from sales made during the past accounting period. \#2. - On December 1, raw materials were purchased on account from Smith Co. for $213,500. \#3 - Requisitioned raw materials from the warchouse for Job #107 - Total $62,000. H4 - On 12/16 a partial payment of $113,500 was made on the materials purchased in transaction \#2 and a 90 -day, 5% note payable for the balance was issued. 45 - Reauisitioned raw materials from the warehouse for Job #108 - Total $75,500. H6 - Direct labor for the month was used as follows: Job#107$76,000Job#108-$91,000 The direct labor employees were paid in cash (no withholdings). \#7 - Paid $63,800 for indirect labor. (No withholdings.) #8 - Other indirect costs of production were $47,500 for the period, with half paid in cash and half placed on account. 49 - Paid administrative salaries for the month of $15,500 and sales salaries of 57,500 . (No withholdings.) \#10 - Received and paid the utility bill of $2,400. The company determined that $1,800 related to the factory and $600 to selling and administrative activities. \#11 - Estimated property taxes for the month at $400. Allocate $250 to the factory and $150 to selling and administrative activities. \#12 - Prepare the entry to accrue interest on the note to Smith Company on 12/31. H13 - Prepare adjusting entries for depreciation for one month. Use straight-line depreciation and no salvage value (refer to the chart of accounts/trial balance for the historical cost of each). \#14 - Factory overhead is applied to production at 75% of direct labor dollars. \#15 - Job \#107 is complete and ready for sale. Prepare the necessary entry to transfer the cost of the job. \#16 - The remainder of Job #106 and 1,200 units of Job #107 are sold for cash of $271,300. Prepare the necessary entry (or entries). \#17 - If there is any over or underapplied manufacturing overhcad, close the amount into Cost of Goods Sold. Step \#2 - Answer the following questions regarding the company's production during the current accounting period. 1. During the period the company purchased $213,500 of raw materials. How much, in dollars, of raw materials were used in production during the current period? 2. Give one reason why a company would use a predetermined overhead application rate rather than apply the actual amount of factory overhead incurred? 3. You were asked to close the over or underapplied overhead into the cost of goods sold. Explain another way to dispose of the under or overapplied overhead. Lab \#2 - Chaoter 12