Vancouver Landscaping Company uses a job order cost system. As of January 1, its records showed the attached inventory account balances. The work in process inventory at that time consisted of two jobs with the detail for each job also attached. Attached is the production information in summarized form) for the company for the month of January. The company uses the perpetual inventory method to account for all inventories. REQUIRED: (1) (2) Using the attached forms, set up T accounts and make entries to those T accounts to record the beginning inventory balances and the production data for the month of January. Formal general journal entries are not required. Using the attached form, indicate the following balances as of January 31. Show all computations necessary to support your answer. (a) Direct Materials Inventory. (b) Work in Process Inventory. Finished Goods Inventory. (d) Under- or Overapplied Manufacturing Overhead. Assume that the under-or overapplied manufacturing overhead is considered material (significant) in amount. Using the attached forms, prepare the general journal entry, in good form, to dispose of this amount, assuming that the company uses the ending balances in the appropriate accounts to do the proration. Show all supporting computations. Round your proration factors to four decimal places and the prorated amounts to the nearest whole dollar. (3) VANCOUVER LANDSCAPING COMPANY INVENTORY BALANCES AT JANUARY 1 Direct Materials Inventory (shrubs, trees, etc.) Work in Process Inventory Finished Goods Inventory $ 12.000 6.000 25.000 VANCOUVER LANDSCAPING COMPANY JOBS IN PROCESS AT JANUARY 1 Direct Materials Direct Labor Manufacturing Overhead $ 10.000 14.500 5 29,000 12.500 10.000 2. Job 500 (1600 Pennsylvania Ave.) Job 510 10 Downing Street) VANCOUVER LANDSCAPING COMPANY TRANSACTIONS RELATING TO PRODUCTION FOR MONTH OF JANUARY (a) Direct materials purchased on account, $115.000 (0) Landscaping payroll costs paid amounted to $180,000. These should be distributed in the following manner. Job 500, $30,000: Job 510, S65.000: Job 520, 575,000, and indirect labor, $10,000 (c) Manufacturing overhead costs incurred (other than indirect labor and indirect materials consisted of the following: depreciation. 58.000 miscellaneous, $10,000 (all purchased on account) (Materials requisitioned into production: Job 500, 513,000: Job 510, 531.000, and Job 520. $45,000. Indirect materials requisitioned into production, $3,000 (not accounted for in Materials Inventory (e) Manufacturing overhead is applied at a rate of 2007 of the direct labor cost Job Nos. 300 and Sio were completed and transferred to Finished Goods loventory (g) Sold Job No. 510 to a customer, on account for $325,000
