Question 1 of 3 5.54 / 30 E View Policies Show Attempt History Cu rrent Attem pt in Progress Wild horse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the onlyjob in process. The costs incurred prior to January 1 on thisjob were as follows: direct materials $26,000, direct labor $15,600, and manufacturing overhead $20,800. As of January 1, Job 49 had been completed at a cost of $117,000 and was part of nished goods inventory. There was a $19,500 balance in the Raw Materials Inventory account on January 1. During the month ofJanuary, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $158,600 and $205,400, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $117,000 on account. 2. Incurred factory labor costs of $91,000. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $15,600; and various other manufacturing overhead costs on account $20,800. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $13,000 $6,500 51 50,700 32,500 52 39,000 26,000 52 39,000 26,000 5. Assigned indirect materials of $22,100 and indirect labor of $26,000.Your answer is partially correct. Prepare thejournal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory $1,09,800 Accounts Payable 7.61 / 35 View Policies Show Attempt History Current Attempt in Progress For the year ended December 31, 2022, the job cost sheets of Sheridan Company contained the following data. Job Direct Direct Manufacturing Total Number Explanation Materials Labor Overhead Costs 7640 Balance 1/1 $23,000 $22,080 $26,496 $71,576 Current year's costs 27,600 33,120 39,744 100,464 7641 Balance 1/1 10,120 16,560 19,872 46,552 Current year's costs 39,560 44,160 52,992 136,712 7642 Current year's costs 53,360 50,600 60,720 164,680 Other data: 1. Raw materials inventory totaled $13,800 on January 1. During the year, $128,800 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $80,040 and Job No. 7639 for $84,640. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Job Nos. 7638, 7639, and 7641 were sold on account for $487,600. 1 z 3 3. Job No. /640 and Job No. /641 were completed during the year. 4. Job Nos. 7638, 7639, and 7641 were sold on account for $487,600. 5. Manufacturing overhead incurred on account totaled $110,400. 6. Incurred depreciation on factory machinery $7,360. 7. Assigned indirect materials of $12,880 and indirect labor of $16,560. (a) Your answer is partially correct. Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Post each to the T-account in the following order: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. Work in Process Inventory 1/1 Balance 137388 Completed Work 413234 Direct Materials 140170Work in Process Inventory 1/1 Balance 137388 Completed Work 413234 Direct Materials 140170 Direct Labor 4 148730 Manufacturing Overhead 178476 12/31 Balance 191530 Work in process balance to 191530 Unfinished job No. 7642 4 191530 eTextbook and Media