(Appendix 4A) Journal Entries Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: a. Purchased materials on account for $29,670. b. Requisitioned materials totaling $24,500 for use in production. Of the total, $9,200 was for Job 58, $8,900 for Job 59, and the remainder for Job 60. c. Incurred direct labor of $32,400, with an average wage of $18 per hour. Job 58 used 800 hours; Job 59, 600 hours; and Job 60, 400 hours. d. Incurred and paid actual overhead of $17,880 (credit Various Payables). e. Charged overhead to production at the rate of $4.80 per direct labor hour. f. Completed and transferred Jobs 58 and 59 to Finished Goods. g. Sold Job 57 (see beginning balance of Finished Goods) and Job 58 to their respective clients on account for a price of cost plus 40%. Beginning balances as of May 1 were: Required: 1. Prepare the journal entries for Transactions a through g. 2. Prepare brief job-order cost sheets for Jobs 58, 59, and 60. 3. Calculate the ending balance of Raw Materials. 4. Calculate the ending balance of Work in Process. 5. Calculate the ending balance of Finished Goods.

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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
BuyFind

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

Solutions

Chapter
Section
Chapter 4, Problem 50E
Textbook Problem

(Appendix 4A) Journal Entries

Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred:

  1. a. Purchased materials on account for $29,670.
  2. b. Requisitioned materials totaling $24,500 for use in production. Of the total, $9,200 was for Job 58, $8,900 for Job 59, and the remainder for Job 60.
  3. c. Incurred direct labor of $32,400, with an average wage of $18 per hour. Job 58 used 800 hours; Job 59, 600 hours; and Job 60, 400 hours.
  4. d. Incurred and paid actual overhead of $17,880 (credit Various Payables).
  5. e. Charged overhead to production at the rate of $4.80 per direct labor hour.
  6. f. Completed and transferred Jobs 58 and 59 to Finished Goods.
  7. g. Sold Job 57 (see beginning balance of Finished Goods) and Job 58 to their respective clients on account for a price of cost plus 40%.

Beginning balances as of May 1 were:

Chapter 4, Problem 50E, (Appendix 4A) Journal Entries Yurman Inc. uses a job-order costing system. During the month of May,

Required:

  1. 1. Prepare the journal entries for Transactions a through g.
  2. 2. Prepare brief job-order cost sheets for Jobs 58, 59, and 60.
  3. 3. Calculate the ending balance of Raw Materials.
  4. 4. Calculate the ending balance of Work in Process.
  5. 5. Calculate the ending balance of Finished Goods.

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Chapter 4 Solutions

Managerial Accounting: The Cornerstone of Business Decision-Making
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