WORK ORDER PROBLEM VENTAMEX manufactures custom aluminum windows using a work order system At the end of 2021, the company had #100 in the warehouse of finished goods to order with a balance of $190,000. Work-in-process inventory consisted of two orders: order #101 with a running balance of $25,000 and order #102 with a running balance of $35,000. The beginning balance of both direct and indirect materials in the warehouse was $210,000. In the month of January 2022, one more order was received, which was assigned the number #103 The company uses a normal costing system and applies its factory overhead costs (GIF) using MOD hours as a base. The estimated gif for the year 2022 was $2,250,000 and the total MOD hours for the 2022 hours were estimated to be 9,000.

During the month of January, the following transactions occurred: a) Materials were purchased in general for $130,000 on credit b) Order #101 required $60,000 of material, order #102 required $75,000, and order #103 required $52,000. Indirect materials used in the month totaled $30,000 c) In order #101 the workers worked 270 hours, in order #102 they worked 220 hours and in order #103 they worked 195 hours. Labor is paid at $110 an hour. Indirect labor wages for January were $40,000 d) GIFs were applied e) Other indirect expenses for the month were: Factory rent $45,000 Factory machinery depreciation $12,000 Public services $22,000 f) Orders #101 and #102 are finished g) Orders #100 and #102 were delivered to customers charging cash at a price 45% above cost. COMPETITION IN THE SPACES MARKED IN COLOR It is requested: 1. GIF application rate

2. Table of the cost of orders order #101 order # Initial balance Maryland MODIFICATION gifs TOTAL 3. Journal Entries a) Purchase of material

b) Use of materials

c) Payment of salaries in the factory area

d) Application of the GIF

e) Registration of real GIFs

f) Termination of orders

g) Delivery of orders to customers

4. Prepare T accounts for: Material Inventory, Work-in-Process Inventory, and Finished Goods Inventory

5. Determine the over or under application of the gif and adjust the cost of sales (make the journal entry)

5. Prepare the statement of the cost of production and cost of sale