Question

Inc. Uses a job-order costing system. During the month of May, the following transactions com May 1 3 31 31 31 31 31 Purchased materials on account for $29.720 Requisitioned materials totaling 524 510 for use in production of the total, 39,190 was for Job 58. $8,880 for Job 59, and the remainder for Job 60. incurred direct labor for the month of $34.580, with an average wage of $19 per hour Job 58 used 810 hours: Job 50, 620 hours, and Job 60,300 hours incurred and paid actual overhead of $17.860 credit Various Payabios) Charged overhead to production at the rate of $4.90 per direct wborhout Completed and transfered Jobs 58 and 5 to Finished Goods 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 $2,280 Work in Process Finished Goods (Job 57) 25,620 Required: 1. Prepare journal entries for transactions from May 1 through 31. 2. Prepare brief job order cost shoots 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 Chart of Accounts CHART OF ACCOUNTS Yurman Inc. General Ledger REVENUE 410 Sales Revenue ASSETS 110 Cash 120 Accounts Receivable 131 Supplies 132 Prepaid Insurance 141 Raw Materials 142 Work in Process 143 Overhead Control 144 Finished Goods EXPENSES 510 Cost of Goods Sold 520 Insurance Expense 530 Wages Expense 540 Supplies Expense 550 Utilnes Expense

Answer 1

GENERAL JOURNAL
	DATE	ACCOUNT	POST. REF.	DEBIT	CREDIT
1.	May 1	Raw materials		$29720
2.		Accounts payable			$29720
3.	May 3	Work in process		$24510
4.		Raw materials			$24510
5.	May 31	Work in process		$34580
6.		Wages payable			$34580
7.	May 31	Overhead control		$17860
8.		Various payable			$17860
9.	May 31	Work in process (810+620+390)*$4.90		$8918
10.		Overhead control			$8918
11.	May 31	Finished goods		$52247
12.		Work in process			$52247
13.	May 31	Accounts receivable (54169*1.40)		$75837
14.		Sales revenue			$75837
15.		Cost of goods sold		$54169
16.		Finished goods			$54169

Finished goods= Job 58+Job 59= $28549+23698= $52247

Cost of goods sold= Job 57+Job 58= $25620+28549= $54169

Job 57= Beginning balance= $25620

Yurman Inc.
Job-Order Cost Sheets
For the Month of May
1.	Amount Descriptions	Job 58	Job 59	Job 60
2.	Direct materials	$9190	$8880	$6440
3.	Direct labor	(810*$19)= 15390	(620*$19)= 11780	(390*$19)= 7410
4.	Applied overhead	(810*$4.90)= 3969	(620*$4.90)= 3038	(390*$4.90)= 1911
5.	Total	$28549	$23698	$15761

Direct materials of Job 60= $24510-9190-8880= $6440

3) Raw materials ending balance= Beginning balance+Purchases-Used in production

= $2280+29720-24510= $7490

4) Work in process ending balance= Beginning balance+Direct materials+Direct labor+Applied overhead-Finished goods

= $0+24510+34580+8918-52247= $15761

5) Finished goods ending balance= Beginning balance+Cost of goods manufactured-Cost of goods sold

= $25620+52247-54169= $23698