Steps: Slep - Setup Chart of Accounts by either importing the chart (Excel file on Canvas) or by entering the accounts one by one Step 2 - Establish the beginning balances by entering the big journal entry below. Use January 1 as the date Cash Accounts Receivable Raw Materials Inventory Goods In Process Inventory Finished Goods Inventory Land Office Building Factory Building Factory Machinery Onice Equipment Accum. Depr. Fac Bldg. Accum. Depr. Fac. Mach. Accum. Depr.-O . Equip. Accum. Depr. - Once Bldg. Common Stock 290,000 18.000 10.000 15.000 22.000 100.000 96.000 480.000 120,000 24,000 60.000 30,000 12.000 24,000 700.000 100,000 249,000 Retained Earnings Note: Job W107 (job cost cardsheet attached) is the only job in Work in Process Inventory on 1/1/X1. Finished Goods Inventory consists of what is left of Job N106 (job cost card/sheet is attached.) A blank job cost card/sheet is attached for Job #108, a job you will begin this month. Step 3: Now, enter post the transactions balance sheet 1/3 Received 510. N eces er the transactions and adjustments for January. While the compute ctions to the accounts in the general leder, you should use the job cost car ne you've entered of the transactions, print your income statement and ecessary. When you've entere 131 customers paying on account 1/5 Purchased raw mater W materials on account from Smith Co. for $115.000. 1/12 Requisitioned raw m aterials from the warehouse for Job #107 - Total $25,000. 176 Made a partial payment of $50,000 on them 60-day, 6% note payable for the balance. motor 550,000 on the materials purchased on January 5 and issued a 1/18 Requisitioned raw materi oned raw materials from the warehouse for Job #108 - Total $50,000. 1/31 Direct labor for the month was used as follows: Job #107 - $36,000 Job W108 -- $70,000 The direct labor employees were paid in cash (no withholdings). 1/31 Paid $55,000 for Indirect Labor. (No withholdings.) 1/31 Paid administrative salaries for the month of $3,500 and sales salaries of $1,500. (No withholdings.) 1/31 Received and paid the utility bill of $1,750. The company determined that $1.400 related to the factory and $350 to selling and administrative activities. 1/31 Estimated property taxes for the month at $800. Allocate $650 to the factory and $150 to selling and administrative activities. 1/31 Prepare the adjusting entry to accrue interest on the 1/16 note to Smith Company 1/31 Prepare adjusting entries for depot and no salvage value. Justing entries for depreciation for one month. Use straight-line depreciation Factory Building 40-year life Factory Machinery 20-year life Office Building 20-year life Office Equipment 10-year life 1/31 Factory overhead is applied to production at 50% of direct labor dollars. Prepare the entry 1/31 Job #107 is complete. Prepare the necessary entry. 1/31 The remainder of Job#106 and 1,800 units of Job #107 are sold for cash of $195,000. Prepare the necessary entry (or entries). 1/31 If there is any over or underapplied manufacturing overhead, close the amount into Cost of Goods Sold. Hint - view the Manufacturing Overhead account in the General Ledger: Don't forget to complete the questions and the Schedule of Cost of Goods Manufactured & Sold that appear at the end of this document. The following Job Cost Sheets are for your benefit only and do not need to be submitted. Job Cost Sheet Job Order No. 106 Type: A gadgets adgets Units: 2.440 Begini Direct Labor $55,000 Units: 2.440 Begun: 10 Completed: 11/30 Overhead $27,500 $39,500 Cost Summary Direct materials_$39,500 Direct labor __55,000 Overhead - 27,500_ Total _$122,000 Cost per unit $50 (122,000/2440) Units sold: _ 2000 Units remaining 440 Job Order No. 107 Type: Job Cost Sheet Units: 2000_ Direct Labor 56,400 Direct Materials Begun: 11/1 Completed:___ Applied Overhead $3,200 $5,400 Cost Summary Cost per unit Units sold: Direct materials Direct labor Overhead Total Units remaining Job Cost Sheet Job Order No. 108 Direct Materials Direct Labor Applied Overhead Cost Summary Direct materials Cost per unit Direct labor Units sold: Overhead Units remaining Total Lab* 3 Questions for Job Order Problem Answer the following: 1. In January you purchased $115,000 of raw materiale How much in dollars, of raw materials were used in production during January? 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. 4. Create a Statement of the Cost of Goods Manufactured and sold for this company for January. (See Chapters 14 and 15 for examples. You may submit this using Excel rather than typing in word format.) Account Number Account Name Cash Accounts Receivable Manufacturing Overhead Raw Materials Inventory Goods in Process Inventory Finished Goods Inventory Land Office Building Accumuated Depreciation - Office Building Factory Building Accumuated Depreciation - Factory Building Factory Machinery Accumuated Depreciation -- Factory Machinery Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable Notes Payable Property Taxes Payable Interest Payable Common Stock $10 Par Value APIC Selling and Administrative Expenses Cost of Goods Sold Type Detail Type Bank Accounts Receivable Other Current Asset Inventory Other Current Asset Inventory Other Current Asset Inventory Other Current Asset Inventory Fixed Assets Land Fixed Assets Buildings Fixed Assets Accumulated Depreciation Fixed Assets Buildings Fixed Assets Accumulated Depreciation Fixed Assets Machinery & Equipment Fixed Assets Accumulated Depreciation Fixed Assets Machinery & Equipment Fixed Assets Accumulated Depreciation Accounts Payable Other Current Liabilities Other Current Liabilities Other Current Liabilities Equity Common Stock Equity Paid In Capital or Surplus Expense Office/General Cost of Goods Sold