E2-18 Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow ignore any accounts that are not listed) During January, the company had the tollowing transactions (a) Purchased $61,000 worth of materials on account. (b) Recorded materials issued to production as follows 201 202 Indirect materials $11,500 21,100 5,500 S 38,100 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following Job Number 201 202 Factory supervision Hours 116 383 Total Cost 2,700 10,900 5 19,100 (d) Applied overhead to production at a rate of $28,00 per direct labor hour for 499 actual direct labor hours (e) Recorded the following actual manufacturing overhead costs. Item Factory rent Total Cost 5 3,100 Description Paid in cash Factory utilities Factory insurance 3,400 Factory equipment ,400 Incurred but not paid 1,700 Prepaid policy $11,600 (n Completed Job 201 and transferred it to Finished Goods Inventory (g) Sold Job 200 tor $51,700 Job 202 was still in process at the end of January
Required 1. Post the preceding transactions to T-accounts. (Note: Capture the offsetting of debits and credits to other accounts such as Cash, Payables Depreciation, and so on in Miscellaneous Accounts.) Raw Materials Inventory Work in Process Inventory 42,000 16,500 31/1 42,000 31/1 16,500 Finished Goods Inventory Cost of Goods S 21,000 31/1 21,000 31/1 Manu Overhead Sales Revenue 31/1 31/1 Miscellaneous Accounts (Cash, Payables, etc.)
2. Compute the ending balance in the following accounts: a. Raw Materials Inventory b. Work in Process Inventory c. Finished Goods Inventory e. Manufacturing Overhead 3. Compute the total cost of Jobs 201 and 202 at the end of January Job Total Cost Number of Job 201 202
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