Learning Objectives 2, 4 Check Figure Erding balance Work in Process Inventory $170.000 Problem 26-2A Objective: To record a full job order cost accounting cycle Miracle Manufacturing Company uses a job order cost accounting system and shows the following transactions for January 20X1: 20X1 Jan. 3 Purchased raw materials on account, $197.000 of this amount. $157,000 was for Material A and the rest was for Material B (factory supplies). 10 Issued materials to production, $125.000. Of the materials issued, $15.000 was Material B. Of the direct materials issued. $60,000 was for Job I (1.000 units) and $50.000 was for Job 2 (2.000 units). 15 Distributed the semimonthly payroll of $100.000 as follows: Job 1. $50.000; Job 2. $20,000: indirect labor. $10.000: sales. $12.000: office, $8.000. 31 Recorded the following factory overhead expenses: Utilities (paid in cash) $ 1.000 Depreciation of factory equipment 1.000 Insurance expired 500 Repairs (paid in cash) 20,000 Payroll taxes (credit Payroll Taxes Payable) 18.000 31 Distributed the semimonthly payroll. It was identical to the payroll of January 15. except that Job I used $10,000 and Job 2 used $60,000. 31 Applied factory overhead to production at 50% of direct labor costs. 31 Completed Job 1 and transferred it to the finished goods stockroom as Product ). (Total the job sheet to find the cost.) 31 Sold 50 units of Product on credit. The sales price per unit was $200. 31 Closed the amount of overapplied or underapplied overhead. Directions: 1. Record cach transaction in general journal form. 2. Post to the following general ledger accounts: Raw Materials Inventory (108). Work-in-Process Inventory (109), Finished Goods Inventory (110). Cost of Goods 1172 PART VI Accounting for Decision Making and Manufacturing Operations Sold (440), and Factory Overhead Control (470). 3. Post to the following subsidiary records: Material A, Material B, Job 1, and Job 2. After all posting is complete, verify the balances of these records against the general ledger controlling accounts