Journal Entries, Job Costs

The following transactions occurred during the month of April for Olakala Company:

1. Purchased materials costing $3,000 on account.
2. Requisitioned materials totalling $1,700 for use in production: $500 for Job 443 and the remainder for Job 444.
3. Recorded 50 hours of direct labour on Job 443 and 100 hours on Job 444 for the month. Direct labourers are paid at the rate of $8 per hour.
4. Applied overhead using a plantwide rate of $7.50 per direct labour hour.
5. Incurred and paid in cash actual overhead for the month of $1,230.
6. Completed and transferred Job 443 to Finished Goods.
7. Sold on account Job 442, which had been completed and transferred to Finished Goods in March, for cost ($2,000) plus 25 percent.

Required:

1. Prepare journal entries for transactions (a) through (e).

a.	Raw Materials
	Accounts Payable
b.	Work in Process
	Raw Materials
c.	Work in Process
	Raw Materials
d.	Work in Process
	Overhead Control
e.	Overhead Control
	Cash

2. Prepare job-order cost sheets for Jobs 443 and 444.

Olakala Company
Job Order Cost Sheets
For the Month of January
	Job 443	Job 444
Direct materials	$	$
Direct labour
Applied overhead
Total	$	$

Prepare journal entries for transactions (f) and (g).

f.
g. Cost
Sale

3. Prepare a statement of cost of goods manufactured for April. Assume that the beginning balance in the Raw Materials account was $1,400 and that the beginning balance in the Work in Process account was zero. If the amount box does not require an entry, enter "0".

Olakala Company
Schedule of Cost of Goods Manufactured
For the Month Ended April 30
Direct materials:
	$
	$
		$
	$
		$
		$
		$