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 37,000 Inventory Finished Goods 50,000 Inventory 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 60,100 Accounts Payable 60,100 b. 50,000 Work in Process Overhead Control Materials 8,800 58,800 C. Work in Process Overhead Control Administrative Expense Selling Expense Wages Payable 75,000 36,000 28,000 19,000 158,000 d. 10,400 Overhead Control Accumulated Depreciation 10,400 e. 1,450 Overhead Control Property Taxes Payable 1,450 f. 6,200 Overhead Control Prepaid Insurance 6,200 g. 5,500 Overhead Control Utilities Payable 5,500 h. Selling Expense Cash 7,900 7,900 i. Administrative Expense Selling Expense Accounts Payable 800 1,650 2,450 j. 750 Administrative Expense Accounts Payable 750 k. 72,000 Work in Process Overhead Control 72,000 1. 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 T-account in the same order in which they were journalized. Materials Inventory Work in Process Inventory Balance Ba (a) (b) (c) (d) (e) (f) (9) Ba (h) (i) (j) (k) (1) Balance Finished Goods Inventory 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 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? Decreases by $ 3,650