Topper Inc. had the following inventories as of March 1:

Finished goods.....................................$18,000

Work in process....................................17,000

Materials..............................................14,000

The work in process account currently controls three jobs:

		JOB 62	JOB 63	JOB 64
Materials		$1800	$2400	$1700
Labor		3100	2500	1250
Applied Overhead		2680	1960	1480
Total		$7580	$6860	$4430

Make the necessary journal entries concerning the operations for the month

I THINK IT WILL BE EASIER TO USE SUBSIDIARIES FOR EACH JOB THOUGH IT IS NOT NECESSARY. You need not journalize these by the job, but you can if it is easier for you.....don't forget those beginning balances above!!

1. Materials purchased and received were $24,000, terms net 30.

2. Materials requisitioned for production were $23,000. Of this amount, $2200 was indirect materials. The remaining amount was distributed as follows: $5500 to JOB 62, $7400 to JOB 63 and $7900 to JOB 64.

3. Materials returned to the storeroom from the factory amounted to $600 of which $300 was indirect and the remainder came from JOB 63.

4. Materials returned to the vendors were $100.

5. Total gross payroll for the month was $60,000. Federal income tax withheld was $7000. Union dues were $500. The FICA rate is 7.65% [.0765].

6. Direct labor was 50% of the payroll distributed $9250 to JOB 62, $10,150 to JOB 63, and $10,600 to JOB 64. Indirect labor was 30% of the payroll, sales salaries were 10% and administrative salaries were 10%.

7. An additional 13.55% was entered for employer payroll taxes representing the employer's match of the employees FICA, FUT of .8% and SUT of 5.1%. Payroll taxes relating to both direct and indirect labor were charged to factory overhead.

8. Other factory overhead amounted to $7500. Included in the figure was $4000 for depreciation of the factory, $350 for expired factory insurance, and the remaining $3150 were on account.

9. Factory overhead was applied to production at the rate of 80% of direct labor charged on the 6th.

10. JOBS 62 and 63 were completed and sent to the finished goods warehouse.[ Don't forget the beginning balances!]

11. Both of the above JOBS were shipped and billed at a gross profit of 70% of cost of goods sold.

12. Cash collections of A/R during the month were $66,420.

Part II

Morgan Piano Company makes their instruments in two departments. They have assembled the following information:

Materials used in D1	$2600-week #1	$1300-week #2
Materials used in D2	$2200-week #1	$260-week #2
Labor hours used in D1	300-week #1	250-week #2
Labor hours used in D2	400-week #1	100-week #2
Direct labor rate in D1	$12.00 per hour-week #1	$12.00 per hour-week #2
Direct labor rate in D2	$8.00 per hour-week #1	$8.00 per hour-week #2
Machine hours used in D2	500-week #1	400-week #2
Applied factory overhead in D1	$6.00 per direct labor hour-week #1	$6.00 per direct labor hour-week#2
Applied factory overhead in D2	$7.00 per machine hour-week #1	$10.00 per machine hour -week #2

Based on the above job order cost information find:

1. Applied factory overhead for D1.

2. Applied factory overhead for D2.

3. Total cost of materials used.

4. Cost of direct labor for D1, week #1.

5. Total direct labor hours to build this piano.

SHOW ALL OF YOUR WORK FOR PARTIAL CREDIT.