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, $60,200. b. Materials issued to production to fill job order requisitions direct materials, $50,000; indirect materials, $8,700, 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. 9. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. 1. Depreciation on office equipment, $800; on sales vehides, $1,650, 1. 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 Finished Goods Inventory 37.000 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 a. Materials 60.200 Accounts Payable 60,200 50.000 b. Work in Process Overhead Control Materials 8.700 58,700 75,000 36.000 C. Work in Process Overhead Control Administrative Expense Selling Expense Wages Payable 28.000 19,000 158,000 10,400 d. Overhead Control Accumulated Depreciation 10.400 1.450 Overhead Control Property Taxes Payable 1.450 e. Overhead Control Property Taxes Payable 1,450 1,450 f. Overhead Control 6,200 Prepaid Insurance 6,200 9. Overhead Control Utilities Payable 5,500 5,500 h. Selling Expense Cash 7,900 7,900 i. 800 Administrative Expense Selling Expense Accumulated Depreciation 1,650 2,450 j. Administrative Expense Accounts Payable 750 750 k Work in Process Overhead Control 72,000 72,000 1. Finished Goods 160,000 Check My Work ORI 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, Post the entries to the account in the same order in which they were foumalized. Materials Inventory Balance Work in Process Inventory Balance Finished Goods Inventory Finished Goods Inventory Balance Overhead Control 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 Direct materials Direct labor 50.000 75,000 50,000 75,000 eBook For the Month Ended May 31, 20XX Direct materials Direct labor Overhead: Supplies Indirect labor 36,000 Depreciation, plant, and equipment 10400 Property taxes 1.450 Utilities, factory 5,500 Insurance 6.200 72,000 197.000 Add: Overapplied overhead Overhead applied Manufacturing costs added Add: Beginning work in process Less Ending work in process cost of goods manufactured 37.000 74,000 160,000 4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase? Decreases by