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	350	units		@		$	290		=		$	101,500
Material R	120	units		@			240		=			28,800
Paint	55	units		@			110		=			6,050
Total cost											$	136,350

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

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

Receiving Report No. 426, Material M, 290 units at $290 each. Receiving Report No. 427, Material R, 115 units at $240 each. Record these purchases with a single journal entry. Enter the receiving report information on the materials ledger cards.

2. Requisitioned the following raw materials for production.

Requisition No. 35, for Job 102, 189 units of Material M. Requisition No. 36, for Job 102, 72 units of Material R. Requisition No. 37, for Job 103, 98 units of Material M. Requisition No. 38, for Job 103, 91 units of Material R. Requisition No. 39, for 23 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.

3. Received the following employee time tickets for work in May.

Time tickets Nos. 1 to 10 for direct labor on Job 102, $82,000. Time tickets Nos. 11 to 30 for direct labor on Job 103, $53,000. Time tickets Nos. 31 to 36 for equipment repairs, $23,000. Record direct labor from the time tickets on the job cost sheets.

4. Paid cash for the following items during the month: factory payroll, $158,000, and miscellaneous overhead items, $138,000. Use the time tickets to record the total direct and indirect labor costs.
5. 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.

6. Delivered Job 102 and accepted the customers promise to pay $460,000 within 30 days.
7. 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.