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A D E B. C ALT-JO-COSTING-T1 F SCORE: 1 G 1 /12 J K L M N 0 P a Q R + S T U W ACCOUNTS RECEIVABLE 1 2 3 4 5 6 RAW MATERIALS INV ACCOUNTS PAYABLE COST OF GOODS SOLD SALES 7 8 FACTORY OVERHEAD WORK IN PROCESS INV 101 WAGES PAYABLE 9 DM DM 10 11 DL DL FO FO 12 TOTAL 0 102 DM 73 14 75 16 17 18 9 PREPAID INSURANCE FINISHED GOODS INV DL FO TOTAL 0 103 0 1 EQUIPMENT DM TRANSACTIONS FOR HOLLYWOOD MANUFACTURING 1 Raw materials were purchased for $42,000 on account. 2 Materials are moved to the factory in the amount of $30,000. The indirect materials were $6,000 and the direct materials were $24,000. (The DM were assigned: $6,000 for Job 101; $8,000 for Job 102; and $10,000 for Job 103.) 3 Total labor costs were $42,000. Indirect labor was $4,000. The direct labor of $38,000 was assigned: $11,000 for Job 101; $12,000 for Job 102; and $15,000 for Job 103. 4 Factory overhead costs consisted of: Amount Factory supervision: credit Wages Payable 22,000 Equipment depreciation: credit Accum. Depr. Equip. 10,000 Factory utilities: credit Accounts Payable 6,000 Factory insurance: credit Prepaid Insurance 2,000 40,000 5 Hollywood allocates factory overhead on the basis of direct labor cost at the rate of 130% of ditect labor cost. 6 Jobs 101 and 102 were completed and moved to Finished Goods. 7 Job 101 was sold for $41,000 on account. 2. DL FO TOTAL 3 4 5 5 ACC. DEPR. EQUIP B DR CR 0 0 0 ACCOUNTS RECEIVABLE FACTORY OVERHEAD PREPAID INSURANCE RAW MATERIALS INV ALT-JO-COSTING-T1 0 2:54 P M27 Jx 130% of direct labor cost. A B C D E F G H 1 J K M N O P Q R S T U V w FO FO TOTAL 0 11 12 13 14 102 DM 15 16 PREPAID INSURANCE FINISHED GOODS INV DL 17 FO 18 TOTAL 0 103 DM TRANSACTIONS FOR HOLLYWOOD MANUFACTURING 1 Raw materials were purchased for $42,000 on account. 2 Materials are moved to the factory in the amount of $30,000. The indirect materials were $6,000 and the direct materials were $24,000. (The DM were assigned: $6,000 for Job 101; $8,000 for Job 102; and $10,000 for Job 103.) 3 Total labor costs were $42,000. Indirect labor was $4,000. The direct labor of $38,000 was assigned: $11,000 for Job 101; $12,000 for Job 102; and $15,000 for Job 103. 4 Factory overhead costs consisted of: Amount Factory supervision: credit Wages Payable 22,000 Equipment depreciation: credit Accum. Depr. Equip. 10,000 Factory utilities: credit Accounts Payable 6,000 Factory insurance: credit Prepaid Insurance 2,000 40,000 5 Hollywood allocates factory overhead on the basis of direct labor cost at the rate of 130% of ditect labor cost 6 Jobs 101 and 102 were completed and moved to Finished Goods. 7 Job 101 was sold for $41,000 on account. DL FO TOTAL DR CR 19 20 21 EQUIPMENT 22 23 24 25 26 ACC. DEPR. EQUIP 27 28 29 30 31 0 ACCOUNTS RECEIVABLE 32 0 FACTORY OVERHEAD 33 0 PREPAID INSURANCE 34 0 RAW MATERIALS INV 35 0 WORK IN PROCESS INV 36 0 FINISHED GOODS INV 37 1 EQUIPMENT 38 0 ACC. DEPR. EQUIP. 39 0 ACCOUNTS PAYABLE 40 0 WAGES PAYABLE 41 0 COST OF GOODS SOLD 12 0 SALES 13 0 0 44 10 ALT-JO-COSTING-T1