Step #1 Complete the journal entries for the period below, making sure to refer to the provided beginning trial balance/chart of accounts for the listing of account names used by the business. Make sure to complete the job cost sheets below as you work through the journal entries to ensure all costs of each job are appropriately accumulated during the period.

Note: Job #107 is the only job in Work in Process Inventory on 12/1/21.

Finished Goods Inventory consists of what is left of Job #106.

A blank job cost sheet is attached for Job #108, a job you will begin this period.

#1 - Received $49,000 from customers paying on their accounts from sales made during the past accounting period. #2 On December 1, raw materials were purchased on account from Smith Co. for $213,500. #3 - Requisitioned raw materials from the warehouse for Job #107 Total $62,000.

#4 On 12/16 a partial payment of $113,500 was made on the materials purchased in transaction #2 and a 90-day, 5% note payable for the balance was issued.

#5 - Requisitioned raw materials from the warehouse for Job #108 Total $75,500

#6 - Direct labor for the month was used as follows: Job #107 -- $76,000 Job #108 -- $91,000 The direct labor employees were paid in cash (no withholdings).

#7 - Paid $63,800 for indirect labor. (No withholdings.) #8 - Other indirect costs of production were $47,500 for the period, with half paid in cash and half placed on account. #9 - Paid administrative salaries for the month of $15,500 and sales salaries of $7,500. (No withholdings.)

#10 - Received and paid the utility bill of $2,400. The company determined that $1,800 related to the factory and $600 to selling and administrative activities. #11 - Estimated property taxes for the month at $400. Allocate $250 to the factory and $150 to selling and administrative activities. #12 - Prepare the entry to accrue interest on the note to Smith Company on 12/31. #13 - Prepare adjusting entries for depreciation for one month. Use straight-line depreciation and no salvage value (refer to the chart of accounts/trial balance for the historical cost of each). Factory Building 40-year life Factory Machinery 15-year life Office Building 30-year life Office Equipment 10-year life

#14 - Factory overhead is applied to production at 75% of direct labor dollars. #15 - Job #107 is complete and ready for sale. Prepare the necessary entry to transfer the cost of the job. #16 - The remainder of Job #106 and 1,200 units of Job #107 are sold for cash of $271,300. Prepare the necessary entry (or entries). #17 - If there is any over or underapplied manufacturing overhead, close the amount into Cost of Goods Sold.

Job Cost Sheet Job Order No. 106

Units: 2,715 Direct Materials: $39,500 Direct Labor$55,000

Overhead: $41,250 Cost Summary Direct materials $39,500

Cost per unit $50.00 (135,750/2,715) Direct labor 55,000

Units sold: 2000 Overhead _ 41,250___ Units remaining 715 Total ____$135,750_____

Fill Out Job Cost Sheets for Job 107 and 108 Job 6 is already filled out

Job Order No. 107 Units 1,600

Direct Materials: 5,400

Direct Labor: 6,400

Applied Overhead: 4,800

Job Order No. 108 Units 3,275

Direct Materials:

Direct Labor:

Applied Overhead:

Step #2 Answer the following questions regarding the companys production during the current accounting period.

1. During the period the company purchased $213,500 of raw materials. How much, in dollars, of raw materials were used in production during the current period?

2. Give one reason why a company would use a predetermined overhead application rate rather than apply the actual amount of factory overhead incurred?

3. You were asked to close the over or underapplied overhead into the cost of goods sold. Explain another way to dispose of the under or overapplied overhead.

Lab #2 - Chapter 12 Quickbooks Import Chart of Accounts Account Name Debit Credit Cash 87,840 DEBIT Accounts Receivable 184,000 DEBIT Manufacturing Overhead - Raw Materials Inventory 12,500 DEBIT Work in Process Inventory 16,600 DEBIT Finished Goods Inventory 35,750 DEBIT Land 64,000 DEBIT Factory Building 675,000 DEBIT Factory Machinery 180,000 DEBIT Office Building 270,000 DEBIT Office Equipment 48,000 DEBIT Accumulated Depreciation 351,900 CREDIT Accounts Payable 82,000 CREDIT Notes Payable - Property Taxes Payable - Interest Payable - Common Stock $10 Par Value 700,000 CREDIT APIC 275,000 CREDIT Retained Earnings 164,790 CREDIT Sales Revenue - Selling and Administrative Expenses - Cost of Goods Sold - Interest Expense - Total DEBITS: 1,573,690

TOTAL CREDITS: 1,573,690