Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. c. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. g. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. i. Depreciation on office equipment, $800; on sales vehicles, $1,650. j. Legal fees incurred but not yet paid for preparation of lease agreements, $750. k. Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the month. 1. Cost of jobs completed during the month, $160,000. The company also reported the following beginning balances in its inventory accounts: Materials Inventory $7,500 Work-in-Process Inventory 37,000 Finished Goods Inventory 50,000 Required: 1. Prepare journal entries to record the transactions occurring in May. For a compound transaction, if an amount box does not require an entry, leave it blank. Materials a. 60,100 Accounts Payable 60,100 b. Work in Process 50,000 Overhead Control 8,800 Materials 58,800 C Work in Process 75,000 C. Work in Process 75,000 Overhead Control 36,000 Administrative Expense 28,000 Selling Expense 19,000 Wages Payable 158,000 d. Overhead Control 10,400 Accumulated Depreciation 10,400 1,450 Overhead Control Property Taxes Payable 1,450 f. Overhead Control 6,200 Prepaid Insurance 6,200 9. 5,500 Overhead Control Utilities Payable 5,500 h. Selling Expense 7,900 Cash 7,900 i. Administrative Expense 2,450 800 Accumulated Depreciation 1,650 j. Administrative Expense 750 Accounts Payable 750 Accounts Payable 750 k. Work in Process 72,000 Overhead Control 72,000 160,000 Finished Goods Work in Process 160,000 2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process Inventory, and Finished Goods Inventory. Materials Inventory Balance 8,800 Work in Process Inventory Balance Finished Goods Inventory Balance Overhead Control Chapter 5 Homework eBook ? Balance 3. Prepare a statement of cost of goods manufactured. Jerico Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20xx Overhead: Manufacturing costs added Cost of goods manufactured $ 4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase? by $ Check My Work 1 more Check My Work uses remaining. Previous Assignment Score: 26.84% All work saved. Save and Exit Submit Assignment for Grading 3. Prepare a statement of cost of goods manufactured. Jerico Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20xx Overhead: Manufacturing costs added Cost of goods manufactured 4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase? by $