Problem 1:

The following information reflects Wallace Companys job order production activities for May.

Raw materials purchase $16, 000

Factory payroll cost 15, 400

Overhead costs incurred Indirect materials 5, 000

Indirect labour 3, 500

Other factory overhead 9, 500

Wallaces predetermined overhead rate is 150% of direct labour cost. Costs allocated to the three jobs worked during May as follows:

	Job 401	Job 402	Job 403
In-process balances on April 30
Direct materials	$3, 600
Direct labour	1, 700
Applied overhead	2, 250
Costs during May
Direct materials	3, 550	$3, 500	$ 1, 400
Direct labour	5, 100	6000	800
Applied overhead	?	?	?

1. Determine the total cost of:

a. The April 30 inventory of jobs in process.

b. Materials used during May.

c. Labour used during May.

d. Factory overhead incurred and applied during May and the amount of any over-orunderapplied overhead on May 31.

e. Each job as of May 31, the May 31 inventories of both goods in process and finished goods, and the goods sold during May.

2. Prepare summarized journal entries for the month to record:

a. Materials purchases (on credit) the factory payroll (paid with cash), indirect materials, indirect labour, and the other factory overhead (paid with cash.

b. Assignment of direct materials, direct labour, and overhead costs to the Goods in Process Inventory account. (use separate debit entries for each job.)

c. Transfer of each completed job to the Finished Goods Inventory account. d. Cost of goods sold. e. Removal of any underapplied or overapplied overhead from the factory overhead account. (Assume the amount is not material.)

3. Prepare a cost of goods manufactured statement for May.