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Speedy Co. takes special orders to manufacture race fast Cars for high end customers. Complete the job cost sheets for Speedy Co. for June based
Speedy Co. takes special orders to manufacture race fast Cars for high end customers. Complete the job cost sheets for Speedy Co. for June based on the following information. Prepare journal entries to record the transactions as well as post to the job cost sheets. a. Purchased raw materials costing $640,000 paid $340.000 and cash $300,000. b. Total Materials requisitions amounted to $543,000.00: the percentage allocated of the total cost is as follows Job Red, $16%; Job Blue, 20%; Job Yellow, 25%; Job Green 22% ; indirect materials 17%. c. Timecard used to charge labor to jobs account for the following hours with a chargeable hourly rate of $110.00 per hour: The total hours charged to each job are as follows: Job Red, 2182 hours; Job Blue, 1194 hours; Job Yellow, 1659, Job Green 2703, indirect labor is 2815. d. The company incurred the following additional overhead costs: depreciation of factory building, $300,000; depreciation of factory equipment, $190,000; expired factory insurance, $230,000; utilities and maintenance cost of $168,409 were paid in cash. e. Applied overhead to all four jobs. The predetermined overhead rate is 210% of raw materials cost. f. Transferred jobs Red, Yellow and Green to Finished Goods Inventory. g. Sold job Red and Green for $500,000 for cash. h. Closed the under- or over-applied overhead account balance. Job Cost Sheets Red Blue Yellow Green Total For the current month Direct materials Direct labor Applied overhead Total costs
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