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Job Order Costing Problem: The following were the inventory balances on 1/1/17: Raw Materials $65,000 Work In Process Finished Goods |$60,000 $84,000 The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: Direct materials $224,000 Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: • Assembly-line workers. • Supervisors. $240,000 45,000 Maintenance workers.. 27,000 • Security. 25,000 d. The following were other factory related costs: Depreciation on equipment.$ 42,000 • Building rent.. • Insurance. • Utilities. 30,000 18,000 66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. & Goods costing $802,000 were sold for $1,463,000. All sales were on credit. Required: 1. Prepare journal entries for all items a through g above. on account. 2. Prepare t-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold. Assume items all sales and purchases were

Job Order Costing Problem: The following were the inventory balances on 1/1/17: Raw Materials $65,000 Work In Process Finished Goods |$60,000 $84,000 The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: Direct materials $224,000 Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: • Assembly-line workers. • Supervisors. $240,000 45,000 Maintenance workers.. 27,000 • Security. 25,000 d. The following were other factory related costs: Depreciation on equipment.$ 42,000 • Building rent.. • Insurance. • Utilities. 30,000 18,000 66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. & Goods costing $802,000 were sold for $1,463,000. All sales were on credit. Required: 1. Prepare journal entries for all items a through g above. on account. 2. Prepare t-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold. Assume items all sales and purchases were

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 8SPB
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Hello, can you please complete the steps below for the following question on the photo. Thank you

 

a. Record all JEs:   "a" through "g" 

b. Prepare AJE for MO

c. Provide Balances in RM, WIP, FG, MO, and CGS accounts.

d. Prepare a Schedule of Cost of Goods Manufactured

e. Prepare Income Statement through Gross Profit/Margin

Job Order Costing Problem: The following were the inventory balances on 1/1/17: Raw Materials $65,000 Work In Process Finished Goods |$60,000 $84,000 The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: Direct materials $224,000 Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: • Assembly-line workers. • Supervisors. $240,000 45,000 Maintenance workers.. 27,000 • Security. 25,000 d. The following were other factory related costs: Depreciation on equipment.$ 42,000 • Building rent.. • Insurance. • Utilities. 30,000 18,000 66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. & Goods costing $802,000 were sold for $1,463,000. All sales were on credit. Required: 1. Prepare journal entries for all items a through g above. on account. 2. Prepare t-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold. Assume items all sales and purchases were
Transcribed Image Text:Job Order Costing Problem: The following were the inventory balances on 1/1/17: Raw Materials $65,000 Work In Process Finished Goods |$60,000 $84,000 The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: Direct materials $224,000 Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: • Assembly-line workers. • Supervisors. $240,000 45,000 Maintenance workers.. 27,000 • Security. 25,000 d. The following were other factory related costs: Depreciation on equipment.$ 42,000 • Building rent.. • Insurance. • Utilities. 30,000 18,000 66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. & Goods costing $802,000 were sold for $1,463,000. All sales were on credit. Required: 1. Prepare journal entries for all items a through g above. on account. 2. Prepare t-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold. Assume items all sales and purchases were
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