Journal entries; assigning costs to jobs; cost accumulation Ialani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: On September 1, the three jobs in Work in Process Inventory had the following balances: The following transactions occurred during September: 09-01 Purchased $1,940,000 of raw material on account. 09-04 Issued $1,900,000 of raw material as follows: Job \#75, $289,600; Job \#78 $252,600; Job \#82, $992,200; Job \#86, $312,400; and indirect material, $53,200 09-15 Prepared and paid the $757,000 factory payroll for September 115. Analysis of this payroll showed the following information: 09-15 On each payroll date, Ialani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job \#75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $39,600; rent, $70,600; and accounts payable (accrued in August), $196,800. 09-24 Purchased raw material on account, $624,000. 09-25 Issued $716,400 of direct material as follows: Job \#78, $154,800; Job \#82, $212,600; Job \#86, $349,000; indirect material issued was $55,800. 09-30 Recorded additional factory overhead costs as follows: depreciation, $809,000; expired prepaid insurance, $165,400; and accrued taxes and licenses, $232,400. 09-30 Recorded and paid the factory payroll for September 1630 of $714,400. Analysis of the payroll follows: 09-30 Applied overhead for the second half of the month to jobs. \begin{tabular}{|c|c|r|r|r|} \hline 09-30 & To recora labor costs & & & \\ \hline Work in Process Inventory & & & 407,125 & 0 \\ \hline Manufacturing Overhead & & & 0 & 407,125 \\ \hline To record applied overhead & & & \\ \hline \end{tabular} b. Use T-accounts to post the information from the journal entries in (a) to the job cost subsidiary accounts and to general ledger accounts. \begin{tabular}{|l|r|l|r|} \hline \multicolumn{5}{|c|}{ Raw Material Inventory } \\ \hline Bal. & 3,324,009 & 9/4 & 1,900,000 \\ \hline 9/1 & 19,400,009 & 9/25 & 772,200 \\ \hline 9/24 & 624,000 & & \\ \hline & 0 & & \\ \hline 0 & & \\ \hline & 0 & & \\ \hline 0 & & \\ \hline & 224,200 & & \\ \hline Bal. & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline \multicolumn{5}{|c|}{ Work in Process Inventory } \\ \hline Bal. & 151,260,090 & 9/15 & 0 \\ \hline 9/4 & 1,846,800 & & \\ \hline 9/15 & 665,600 & & \\ \hline 9/15 & 832,000 & & \\ \hline 9/25 & 716,400 & & \\ \hline 9/30 & 649,400 & & \\ \hline 9/30 & 407,125 & & \\ \hline Bal. & 5,548,575 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{3}{|c|}{ Job 78} \\ \hline Bal. & 0 & Completed & \\ \hline DM & 0 & & \\ \hline DL & 0 & & \\ \hline OH & 0 & & \\ \hline DM & 0 & & \\ \hline \end{tabular} \begin{tabular}{|l|ll|l|l|} \hline & \multicolumn{3}{|c|}{ Job 82} \\ \hline Bal. & 0 & & Completed & \\ \hline DM & 0 & & \\ \hline DL & 0 & & & \\ \hline OH & 0 & & & \\ \hline DM & 0 & & & \\ \hline DL & 0 & & & \\ \hline OH & 0 & & & \\ \hline Bal. & 0 & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline & \multicolumn{2}{|c|}{ Job 86} \\ \hline DM & 312,400 & Completed & \\ \hline DL & 110,800 & & \\ \hline OH & 128,500 & & \\ \hline DM & 349,000 & & \\ \hline DL & 243,600 & & \\ \hline OH & 124,750 & & \\ \hline Bal. & 1,269,050 & & \\ \hline \end{tabular} a. Journalize the September transactions. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Journal entries; assigning costs to jobs; cost accumulation Ialani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: On September 1, the three jobs in Work in Process Inventory had the following balances: The following transactions occurred during September: 09-01 Purchased $1,940,000 of raw material on account. 09-04 Issued $1,900,000 of raw material as follows: Job \#75, $289,600; Job \#78 $252,600; Job \#82, $992,200; Job \#86, $312,400; and indirect material, $53,200 09-15 Prepared and paid the $757,000 factory payroll for September 115. Analysis of this payroll showed the following information: 09-15 On each payroll date, Ialani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour. 09-15 Job \#75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar. 09-20 Paid the following monthly factory bills: utilities, $39,600; rent, $70,600; and accounts payable (accrued in August), $196,800. 09-24 Purchased raw material on account, $624,000. 09-25 Issued $716,400 of direct material as follows: Job \#78, $154,800; Job \#82, $212,600; Job \#86, $349,000; indirect material issued was $55,800. 09-30 Recorded additional factory overhead costs as follows: depreciation, $809,000; expired prepaid insurance, $165,400; and accrued taxes and licenses, $232,400. 09-30 Recorded and paid the factory payroll for September 1630 of $714,400. Analysis of the payroll follows: 09-30 Applied overhead for the second half of the month to jobs. \begin{tabular}{|c|c|r|r|r|} \hline 09-30 & To recora labor costs & & & \\ \hline Work in Process Inventory & & & 407,125 & 0 \\ \hline Manufacturing Overhead & & & 0 & 407,125 \\ \hline To record applied overhead & & & \\ \hline \end{tabular} b. Use T-accounts to post the information from the journal entries in (a) to the job cost subsidiary accounts and to general ledger accounts. \begin{tabular}{|l|r|l|r|} \hline \multicolumn{5}{|c|}{ Raw Material Inventory } \\ \hline Bal. & 3,324,009 & 9/4 & 1,900,000 \\ \hline 9/1 & 19,400,009 & 9/25 & 772,200 \\ \hline 9/24 & 624,000 & & \\ \hline & 0 & & \\ \hline 0 & & \\ \hline & 0 & & \\ \hline 0 & & \\ \hline & 224,200 & & \\ \hline Bal. & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline \multicolumn{5}{|c|}{ Work in Process Inventory } \\ \hline Bal. & 151,260,090 & 9/15 & 0 \\ \hline 9/4 & 1,846,800 & & \\ \hline 9/15 & 665,600 & & \\ \hline 9/15 & 832,000 & & \\ \hline 9/25 & 716,400 & & \\ \hline 9/30 & 649,400 & & \\ \hline 9/30 & 407,125 & & \\ \hline Bal. & 5,548,575 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{3}{|c|}{ Job 78} \\ \hline Bal. & 0 & Completed & \\ \hline DM & 0 & & \\ \hline DL & 0 & & \\ \hline OH & 0 & & \\ \hline DM & 0 & & \\ \hline \end{tabular} \begin{tabular}{|l|ll|l|l|} \hline & \multicolumn{3}{|c|}{ Job 82} \\ \hline Bal. & 0 & & Completed & \\ \hline DM & 0 & & \\ \hline DL & 0 & & & \\ \hline OH & 0 & & & \\ \hline DM & 0 & & & \\ \hline DL & 0 & & & \\ \hline OH & 0 & & & \\ \hline Bal. & 0 & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline & \multicolumn{2}{|c|}{ Job 86} \\ \hline DM & 312,400 & Completed & \\ \hline DL & 110,800 & & \\ \hline OH & 128,500 & & \\ \hline DM & 349,000 & & \\ \hline DL & 243,600 & & \\ \hline OH & 124,750 & & \\ \hline Bal. & 1,269,050 & & \\ \hline \end{tabular} a. Journalize the September transactions. Note: Record any multiple debits or any multiple credits in alphabetical order by account name