Required A:

ABC Co uses a job order costing system. They have five inventory related accounts, Raw Materials, Work-in-Progress, Estimated Manufacturing Overhead, Finished Goods and Cost of Goods Sold. The following transactions took place during the year.

1. Raw materials purchased on account: $236,000

2.Materials transferred out of Raw Materials Account (90% Direct Materials; 10% Indirect Materials ): $210,000

3. Utility bills paid in cash: $82,000 (100% related to factory operations).

4. Salary and Wage Costs Paid during the year:

a.Direct Labor $177,000

b. Indirect Labor $68,000

Required B: The beginning of year balances in the inventory accounts are as follows:

Raw Materials: $61,000

Work-in-Progress $44,000

Finished Goods $52,000

Estimated Manufacturing Overhead $0

Cost of Goods Sold $0

Journal Entries

A. Raw materials purchased on account:

Raw Materials Inventory Account Dr 236000

To Accounts Payable 236000

B. Materials transferred out of Raw Materials A/c

For Direct Materials (210000* 90%):

Work in process Inventory Account Dr 189000

To Raw Materials Inventory 189000

For Indirect Materials (210000*10%):

Overhead Account Dr. 21000

To Raw Materials Inventory 21000

C. For utilities paid relating to Factory operations

1) Work in process Inventory Account Dr 82000

To Factory overhead payable 82000

2) Factory overhead payable Account Dr 82000

To Cash 82000

Based on your journal entries and the above information, prepare the following schedules:

SCHEDULE OF RAW MATERIALS

SCHEDULE OF WORK-IN-PROGRESS

SCHEDULE OF FINISHED GOODS