Question

P20-3B Nami Yee is a contractor specializing in custom-built jacuzzis. On May 1, 2012, her ledger contains the following data Raw Materials Inventory $30,000 Work in Process Inventory 12,200 Manufacturing Overhead 2,500 (dr.) The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000 Subsidiary data for Work in Process Inventory on May 1 include: Job Cost Sheets Job by Customer Direct Materials Direct Labor Manufacturing Overhead Scott $2.500 $2,000 $1,400 Condon 2,000 1.200 Keefe 900 800 560 C5400 54.000 $2,800 840 During May, the following costs were incurred: (a) raw materials purchased on account $4.000 (b) labor paid $7,600, and (c) manufacturing overhead paid $1,400 A summary of materials requisition slips and time tickets for the month of May reveals the following Tar Job by Customer Materials Requisition Slips Time Tickets Scott S 500 $ 100 Condon 600 1,000 Keele 2,300 1,300 1,900 2,900 5.300 5,600 Ceneral use 1,500 2,000 56.800 57.600 Overhead was charged to jobs on the basis of 50.70 per dollar of direct labor cost. The jacuzzis for customers Scott, Condon, and Keefe were completed during May. Each jacuzzi was sold for S12.000 cash Instructions (a) Prepare joumal entries for the May transactions for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; assignment of raw materials, labor, and overhead to production and (iii) completion of jobs and sale of goods (b) Post the entries to Work in Process Inventory (c) Reconcile the balance in Work in Process Inventory with the costs of unfinished che (d) Prepare a cost of goods manufactured schedule for May

Answer 1

Ques 1 4000 Raw Materials Inventory Accounts Payable 4000 7600 Factory Labor Cash 7600 1400 Manufacturing Overhead Cash 1400 a-ii Work in Process Inventory Manufacturing Overhead Raw Materials Inventory 5300 1500 6800 Work in Process Inventory Manufacturing Overhead Factory Labor 56001 2000 7600 3920 Work in Process Inventory ($5,600 x $0.70) Manufacturing Overhead 3920 a-iii Finished Goods Inventory Work in Process Inventory 20190 20190 Manufacturing Overhead * Job Direct Materials Direct Labor Total Costs Scott Condon Keefe Mfg Overhd = Direct labor $0.70 3000 2600 3200 2400 22001 2100 1680 1540 1470 7 080 6340 6770 20190 Cash 36000 Sales ($12,000 x 3 jacuzzis) 36000 20190 Cost of Goods Sold Finished Goods Inventory 20190

31-05-12 20190 Work in process inventory 01-05-12 Balance 122001 Direct materials 5300 Direct labor 5600 Overhead applied 3920 31-05-12 Balance 6830 1 6830 Work in process Job: Tarr Direct materials Direct labor Manufacturing overhead 1900 2900 2030 6830 12200 NAMI YEE COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2012 Work in process, May 1 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Total cost of work in process Less: Work in process, May 31 Cost of goods manufactured 5300 5600 3920 14820 27020 6830 201901