Problem 19 5A Production transactions, subsidiary records, and source documents LO P1, P2, P3, P4 Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers On May 1, the company had no inventories of work in process or finished goods but held the following raw materials Material M 250 units $ 270 $ 67,500 Material R 110 units 250 27,500 Paint 65 units 85 5,525 Total cost $ 100,525 On May 4, the company began working on two technopresses Job 102 for Worldwide Company and Job 103 for Reuben Company Purchased raw materials on credit and recorded the following information from receiving reports and invoices Receiving Report No 426, Material M, 270 units at $270 each Receiving Report No 427, Material R, 105 units at $250 each Record these purchases with a single journal entry Enter the receiving report information on the materials ledger cards Requisitioned the following raw materials for production Requisition No 35, for Job 102, 135 units of Material M Requisition No 36, for Job 102, 72 units of Material R Requisition No 37, for Job 103, 70 units of Material M Requisition No 38, for Job 103, 83 units of Material R Requisition No 39, for 25 units of paint Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets Enter the indirect materials amount on the materials ledger card Received the following employee time tickets for work in May Time tickets Nos 1 to 10 for direct labor on Job 102, $89,000 Time tickets Nos 11 to 30 for direct labor on Job 103, $64,000 Time tickets Nos 31 to 36 for equipment repairs, $23,000 Record direct labor from the time tickets on the job cost sheets Paid cash for the following items during the month factory payroll, $176,000, and miscellaneous overhead items, $136,000 Use the time tickets to record the total direct and indirect labor costs Finished Job 102 and transferred it to the warehouse The company assigns overhead to each job with a predetermined overhead rate equal to 80 of direct labor cost Enter the allocated overhead on the cost sheet for Job 102, fill in the cost summary section of the cost sheets Delivered Job 102 and accepted the customers promise to pay $550,000 within 30 days Applied overhead cost to Job 103 based on the jobs direct labor to date Required Complete the materials ledger cards for Material M, Material R, and paint using the information given in part a and b Complete the job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e Prepare journal entries for part a through g Materials Requisition Job Cost Sheets General Journal Complete the materials ledger cards for Material M, Material R, and paint using the information given in part a and b MATERIALS LEDGER CARD Item Material M Received Issued Balance Receiving Report Date Units Unit Price Total Price Requisition Units Unit Price Total Price Units Unit Price Total Price May 1 Item Material R Received Issued Balance Receiving Report Date Units Unit Price Total Price Requisition Units Unit Price Total Price Units Unit Price Total Price May 1 Paint Item Received ssued Balance Date Receiving Units Unit Price Total Price Requisition Units Unit Price Total Price Units Unit Price Total Price Report May 1 Complete the job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e JOB COST SHEET 102 Customer's Name Worldwide Company Job No Direct Labor Direct Materials Overhead Costs Applied Amount Time Ticket Number Amount Rate Amount Requisition Number Total Total Summary of Costs Total cost of Job 103 Job No Customer's Name Reuben Company Direct Materials Amount Direct Labor Overhead Costs Applied Rate Requisition Number Time Ticket Number Amount Amount Total Total Summary of Costs Total cost of Job Materials Requisition Job Cost Sheets General Journal Prepare journal entries for part a through g (If no entry is required for a transaction event, select No journal entry required in the first account field ) View transaction list Journal entry worksheet 2 3 6 4 5 Record the purchase of raw materials on credit from the receiving reports and invoices given in letter a) Record these purchases with a single journal entry Note Enter debits before credits Transaction General Journal Debit Credit a

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Problem 19-5A Production transactions, subsidiary records, and source documents LO P1, P2, P3, P4 Sager Company manufactures variations of its product, a technopress, in response

Problem 19-5A Production transactions, subsidiary records, and source documents LO P1, P2, P3, P4

Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials.


Material M	250	units	@	$	270	=	$	67,500
Material R	110	units	@		250	=		27,500
Paint	65	units	@		85	=		5,525
Total cost							$	100,525

On May 4, the company began working on two technopresses: Job 102 for Worldwide Company and Job 103 for Reuben Company.

Purchased raw materials on credit and recorded the following information from receiving reports and invoices.

Receiving Report No. 426, Material M, 270 units at $270 each. Receiving Report No. 427, Material R, 105 units at $250 each. Record these purchases with a single journal entry. Enter the receiving report information on the materials ledger cards.

Requisitioned the following raw materials for production.

Requisition No. 35, for Job 102, 135 units of Material M. Requisition No. 36, for Job 102, 72 units of Material R. Requisition No. 37, for Job 103, 70 units of Material M. Requisition No. 38, for Job 103, 83 units of Material R. Requisition No. 39, for 25 units of paint. Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets. Enter the indirect materials amount on the materials ledger card.

Received the following employee time tickets for work in May.

Time tickets Nos. 1 to 10 for direct labor on Job 102, $89,000. Time tickets Nos. 11 to 30 for direct labor on Job 103, $64,000. Time tickets Nos. 31 to 36 for equipment repairs, $23,000. Record direct labor from the time tickets on the job cost sheets.

Paid cash for the following items during the month: factory payroll, $176,000, and miscellaneous overhead items, $136,000. Use the time tickets to record the total direct and indirect labor costs.
Finished Job 102 and transferred it to the warehouse. The company assigns overhead to each job with a predetermined overhead rate equal to 80% of direct labor cost.

Enter the allocated overhead on the cost sheet for Job 102, fill in the cost summary section of the cost sheets.

Delivered Job 102 and accepted the customers promise to pay $550,000 within 30 days.
Applied overhead cost to Job 103 based on the jobs direct labor to date.

Required: Complete the materials ledger cards for Material M, Material R, and paint using the information given in part a and b. Complete the job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e. Prepare journal entries for part a through g.

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Materials Requisition Job Cost Sheets General Journal Complete the materials ledger cards for Material M, Material R, and paint using the information given in part a and b MATERIALS LEDGER CARD Item Material M Received Issued Balance Receiving Report Date Units Unit Price Total Price Requisition Units Unit Price Total Price Units Unit Price Total Price May 1 Item Material R Received Issued Balance Receiving Report Date Units Unit Price Total Price Requisition Units Unit Price Total Price Units Unit Price Total Price May 1 Paint Item Received ssued Balance Date Receiving Units Unit Price Total Price Requisition Units Unit Price Total Price Units Unit Price Total Price Report May 1 Complete the job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e. JOB COST SHEET 102 Customer's Name Worldwide Company Job No. Direct Labor Direct Materials Overhead Costs Applied Amount Time Ticket Number Amount Rate % Amount Requisition Number Total Total Summary of Costs Total cost of Job 103 Job No. Customer's Name Reuben Company Direct Materials Amount Direct Labor Overhead Costs Applied Rate % Requisition Number Time Ticket Number Amount Amount Total Total Summary of Costs Total cost of Job Materials Requisition Job Cost Sheets General Journal Prepare journal entries for part a through g. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 6 4 5 Record the purchase of raw materials on credit from the receiving reports and invoices given in letter a). Record these purchases with a single journal entry. Note: Enter debits before credits. Transaction General Journal Debit Credit a