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Problem 1: Job Order Costing Alarneda Paints Corp. uses the cost-in-order system in the manufacture of its products. The company has balance sheets in its

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Problem 1: Job Order Costing Alarneda Paints Corp. uses the cost-in-order system in the manufacture of its products. The company has balance sheets in its inventory accounts as of April 1 of: INITIAL INVENTORIES Raw materials > Work in process Finished goods $ 34,000 22,000 50,000 During the year he carried out the following transactions: 1. Purchased Raw Material on credit, $170,000 2. Production requested from the warehouse by requisition raw material: $180,000 (80% direct) 180,000 X.80 = se carga a work in process 180,000 X 20 - Charged to Indirect Material 3. Employee salaries and wages were incurred and/or accumulated: DL $200,000; Indirect labor $82,000; Selling and Administrative $90,000 4. Utilities were incurred, $70,000, in production 5. Advertising costs incurred, $100,000 6. Prepaid insurance expenses expired (Prepaid insurance) $20,000 (90% manufacturing) Original entry 20,000 a. Prepaid Insurance Cash 20,000 Original entry 20,000 a. Prepaid Insurance Cash 20,000 Entry to recognize cost and expense: b. Insurance expense Overhead Prepaid insurance 2,000 18,000 20,000 I MADE THE INPUT FOR YOU TO SEE THE PROCESS. 7. Depreciation is recognized for $180,000 (90%plant, COST (10% Expense) 8. Applying OVERHEAD to a 175% DIRECT LABOR COST "rate 200,000 x 1.75) 9. Products that cost to produce them $700,000 according to the Job Order Cost Sheet were transferred to the Finished Goods warehouse.) I MADE THE INPUT FOR YOU TO SEE THE PROCESS 7. Depreciation is recognized for $180,000 (90%plant, COST (10% Expense) 8. Applying OVERHEAD to a 175% DIRECT LABOR COST "rate" 200.000 x 1.75) 9. Products that cost to produce them $700,000 according to the Job Order Cost Sheet were transferred to the Finished Goods warehouse.) 10. The company sold $1,000,000 on credit. The cost of sales was $720,000. required . Prepare the jornal entries to record each transaction . Prepare cuentas T para RM, WP, FG, MOVH, COGS Post to Taccounts and determine balance sheets Prepare un Income Statement

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