Section 3: Job costing BlueTwelve Ltd manufactures a range of climbing gear. It is currently May and production reports show that the business is working

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Section 3: Job costing BlueTwelve Ltd manufactures a range of climbing gear. It is currently May and production reports show that the business is working on three jobs started in April (Job 99, Job 100 and Job 101) and two jobs started this month (Job 102 and Job 103). The following information is available: Required materials not in stock were purchased on credit for $58,000. The costs of direct materials used and direct labour incurred, and the number of direct labour hours and machine hours for the month are as follows: Job number 29 100 101 102 103 Direct material costs 3,000 2,300 58.000 31.000 Direct labour costs 3,840 2,880 1.680 9,600 5,000 Direct labour hours 160 120 70 400 250 Machine hours 300 170 120 680 370 The budgeted manufacturing overhead for the year is $511,000, annual budgeted direct labour hours is 14,000, and annual budgeted machine hours is 20,440. The production process is machine-intensive and an appropriate allocation base that reflects this is used for allocating overhead. During the month, the following overhead costs have incurred: Indirect materials: $4,000 (from stock accounted under raw materials inventory) . Depreciation: $22,000 (80% relates to production machines and the remainder used for selling and administrative functions) Marketing and promotional spend: $3,200 (unpaid till June) Maintenance cost for production machines: $8,000 (paid on 25 May) Miscellaneous factory overhead costs: $17,000 (unpaid till June) Four jobs (Job 99 to Job 102 inclusive) have been completed and sold to customers on credit for $297,000. Additional information: At the beginning of May, there is a batch of completed and unsold products that cost $9,000 to manufacture. There was $48,000 worth of raw materials on hand at the start of the period. The accumulated costs for Job 99, Job 100 and Job 101 at the beginning of the period are $32,000, $40,000 and $58,000, respectively. Required: 1. Prepare relevant journal entries for May. 2. Prepare the Schedule of Cost of Goods Manufactured for May