SOUTH DAKOTA CORPORATION

SOUTH DAKOTA CORPORATION uses a job$-$order costing system with normal costing. At the start of the period, the company had the following balances:

Raw Materials inventory $ $2,500$

Work in process inventory $-$

Finished goods inventory $27,400$

At the start of the period, only Job Alpha was in finished goods.

During the month of February, the following transactions occurred:

a$)$ Purchased raw materials on account for $$24,500.$

b$)$ Requisitioned $$23,000$ of materials for use in production. Of the total, $$9,000$ was for Job Beta, $$8,500$ for Job Gamma and the remainder for Job Sigma.

c$)$ Direct labor incurred for the month was $$36,000.$ The average wage rate is $$20$ per hour. Direct labor was used for jobs as follows:

$$ Job Beta $800$ hours

$$ Job Gamma $600$ hours

$$ Job Sigma $400$ hours

d$)$ Actual overhead incurred for the period was $$17,900($credit various payables$).$

e$)$ The company applied overhead to production at the rate of $$10\mathrm{.}00$ per direct labor hour.

f$)$ Job Beta and Job Gamma were completed during the period and transferred to finished goods.

g$)$ Sold Job Alpha and Job Beta to their respective customers on account at cost plus $40\%.$

REQUIRED:

$1.$ Prepare all journal entries for items a$)$ through g$)$

$2.$ Post all job costs to simplified job$-$cost sheets.

$3.$ Post summary job$-$cost information and other transactions to T$-$accounts as appropriate.

$4.$ Compute the ending raw materials, work in process and finished goods inventories.

$5.$ Compute any misapplied overhead and journalize

$6.$ Compute sales, cost of sales and gross profit as shown on the Income Statement.