urman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 Purchased materials on account for $29,670. 3 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. 31 Incurred direct labor for the month 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. 31 Incurred and paid actual overhead of $17,880 (credit Various Payables). 31 Charged overhead to production at the rate of $4.80 per direct labor hour. 31 Completed and transferred Jobs 58 and 59 to Finished Goods. 31 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: Materials $2,300 Work in Process 0 Finished Goods (Job 57) 25,600

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Business

Peyton Harris

18 September, 17:01

urman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 Purchased materials on account for $29,670. 3 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. 31 Incurred direct labor for the month 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. 31 Incurred and paid actual overhead of $17,880 (credit Various Payables). 31 Charged overhead to production at the rate of $4.80 per direct labor hour. 31 Completed and transferred Jobs 58 and 59 to Finished Goods. 31 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: Materials $2,300 Work in Process 0 Finished Goods (Job 57) 25,600

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Holden Graves · Answer 1

1. Journal Entries

Date Particulars Debit Credit

May-01 Purchases 29,670

Accounts Payable 29,670

May-03

Job 58 - WIP 9,200

Job 59 - WIP 8,900

Job 60 - WIP 6,400

Stock 24,500

May-31 Job 58 - WIP 14,400

Job 59 - WIP 10,800

Job 60 - WIP 7,200

Labour Control 32,400

May-31 Labour Control 32,400

Cash 32,400

May-31 Overhead 17,880

Cash 17,880

May-31 Job 58 - WIP 6,720

Job 59 - WIP 5,040

Job 60 - WIP 3,360

Overhead control 15,120

May-31 Bank 77,084

Sale - Job 57 42,448

Sale - Job 58 34,636

2 Job order Cost Sheet

Particulars Job 58 Job 59 Job 60

Material issue 9,200 8,900 6,400

Labour 14,400 10,800 7,200

Overhead 6,720 5,040 3,360

Total Cost 30,320 24,740 16,960

3. Balance of raw material

Opening 2,300

Purchases 29,670

Issued 24,500

Balance 7,470

3. Balance of WIP

Opening -

Additions 24,500

Issued 15,300

Balance 9,200

3. Balance of Finished Goods

Opening 25,600

(Job 57)

WIP TrFD 15,300

Sale 34,500

Balance 6,400