Problem 19-3A Part 2

2. Prepare journal entries to record the events and transactions a through i.

a) Record raw materials purchases on credit

b) Record the requisition of direct and indirect materials

c) Record payment to computer consultant to reprogram factory equipment

d) Record the entry for direct and indirect labor, paid in cash

e) Record the entry to apply overhead to jobs 136, 138, and 139

f) Record the transfer of completed jobs 136, 138, and 139 to finished goods

g1) Record the entry for sales on account for jobs 136 and 138

g2) Record the entry for cost of good sales of jobs 136 and 138

h) Record the factory overhead (depreciation, insurance and property taxes)

i) Record the entry to apply overhead to jobs 137 and 140 (Work In Process)

Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12,300 10,800 37,900 39,400 3,600 104,000 27,000 $ 131,000 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $535,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance) Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 69,500 37,500 11,000 36,500 I. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. Problem 19-3A Part 1 Required: 1. Prepare a job cost sheet for each job worked on during the month. Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials Labor Overhead Total cost 0 $ 0 0 $ Problem 19-3A Part 3 3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance. Raw Materials Inventory Work in Process Inventory End.bal. 0 End. balo Factory Overhead Finished Goods Inventory End.bal. L o End.bal. Cost of Goods Sold End.bal. Problem 19-3A Part 4 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. Report of Job Costs Work in Process Inventory Balance Finished Goods Inventory Balance Cost of Goods Sold Balance