Question
Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and
Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed). During January, the company had the following transactions: a. Purchased $61,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number Total Cost 201 202 Indirect materials $ 10,500 20,900 5,600 $ 37,000 c. Recorded factory payroll costs from labor time tickets that revealed the following: Job Number 201 202 Hours 113 387 Total Cost Factory supervision $ 2,200 10,300 4,200 $ 16,700 d. Applied overhead to production at a rate of $27.00 per direct labor hour for 500 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Iten Factory rent Depreciation Factory utilities Factory insurance Total Cost $ 3,000 4,800 4,000 2,300 Description Paid in cash Factory equipment Incurred but not paid Prepaid policy
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