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Problem 2. Cost Data for the Honest Company for the year ended 12.31.19 is as follows: Inventories: Raw Materials Work in Process Finished Goods Jan.

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Problem 2. Cost Data for the Honest Company for the year ended 12.31.19 is as follows: Inventories: Raw Materials Work in Process Finished Goods Jan. 1 Dec. 31 190,400 184,800 139,500 159,600 103,800 126,000 390,500 388,700 Direct Labor Raw materials purchased Factory overhead: Indirect Labor Machinery Depreciation Utilities' expense-factory Repairs and Maintenance - factory Property taxes -factory Insurance expense - factory 40,320 24,000 9,100 6,720 5,880 10,920 1. Prepare the Cost of Goods Manufactured Schedule in good format. Show every account, use subtotals and a heading. 2. Prepare the cost of Goods Sold Schedule in good format. Problem 3. Write out the journal entries for the Brandon Company that uses a job order cost system in the year of 2019. USE THE SEPARATE ANSWER SHEET for the journal entries and t-accounts. Write out Income Statement on separate page. JE 1. Materials purchased on account were 514,000. JE 2. Materials put into production were 458,000 (out of this amount, 58,800 were indirect materials) JE 3. Total labor cost was 530,500 (out of this amount, 76,000 was indirect labor) JE 4. Prepaid insurance expense for the factory was used in the amount of 24,360. JE 5. Depreciation of the factory building was 70,500 and of factory equipment was 27,000. JE 6. Prepaid rent expense for the factory was used in the amount of 123,400. JE 7. Based on the pre-determined formula, factory overhead was applied to jobs in the amount of 300,400 JE 8. Cost of jobs completed totaled 840,000 JE 9a and 9b. Sales were 1,200,000 with a cost of goods sold of 740,000 Requirements: 1. Write out the journal entries on the enclosed answer sheet. Journal entries 1 - 9b. 2. Write out the t-accounts used with these journal entries. 3. Calculate a balance for each t-account. 4. What is the balance in Manufacturing overhead after Journal entries 1-9b? 5. JE 10. Write the final journal entry to close out the balance in the manufacturing overhead account. 6. Calculate the final balance in each t-account after JE 10. Only two t-acct. balances will change. 7. Write out the Inocme Statement (only) for the Brandon Company based on the final t-account balances. (use a multi-step format)

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