Accounting Help 12

E 26-2A

Schedule of cost of goods Manufactured. The following information is supplied for Morales Mining and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials.

Work in process, January 1 $70,000

Materials inventory, January 1 28,000

Materials purchases 32,000

Materials inventory, December 31 24,000

Direct labor 44,000

Overhead 18,000

Work in process, December 31 56,000

P 26-8A

Job Order Costing Transaction B &L Enterprisers makes garage doors. During the month of February, the company had four job orders: 303, 304, 305 and 306. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed.

a. Purchased raw materials on account $40,000

b. Issued direct materials to production :

Job No. 303 $8,000

Job No. 304 9,000

Job No. 305 7,000

Job No. 306 8,500

c. Issued indirect materials to production, $5,000.

d. Incurred direct labor costs;

Job. No. 303 $5,000

Job. No. 304 4,000

Job. No. 305 4,800

Job No 306 5,200

e. Charged indirect labor to production, $3,100

f. Paid electricity, heating oil, and repair bills for the factory and charged to production $4,900.

g. Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows:

Job. No. 303 $3,000

Job No. 304 3,500

Job No. 305 3,000

Job No. 306 3,500

H. finished Job Nos. 303 – 306 and transferred to the finished goods inventory account as products J, K, L, and M.

I. Sold products J, K, L, and M for $19,000, $18,500, $16,000 and $18,300 respectively.

Required:

1. Prepare general journal entries to record transactions (a) through (i).

2. Sold products to work in process and finished goods T accounts only.