Question

Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. Un January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 23,600 direct labor $ 14.160 and manufacturing overhead $ 18,880. As of January 1, Job 49 had been completed at a cost of $ 106,200 and was part of finished goods inventory. There was a $ 17.700 balance in the Raw Materials Inventory account During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. Purchased additional raw materials of S 106,200 on account Incurred factory labor costs of $ 82,600 Incurred manufacturing overhead costs as follows: indirect materials S 20,060; indirect labor $ 23,600; depreciation expense on equipment $ 14,160; and various other manufacturing overhead costs on account $ 18,880 Assigned direct materials and direct labor to jobs as follows. 1 2 4 Job No. 50 Direct Materials $ 11,800 46,020 35,400 Direct Labor $5.900 29.5001 23,600 51 52

Answer 1

Job Cost Sheet 50

Date	Direct materials	Direct labor	Overhead
Beg	23600	14160	18880
Jan	11800	5900	5900*1.2 = 7080
	35400	20060	25960
Cost of completed Jobs
Direct material			35400
Direct labor			20060
Overhead			25960
Total			81420

Job Cost Sheet 51

Date	Direct materials	Direct labor	Overhead
Jan	46020	29500	29500*1.2 = 35400
	46020	29500	35400
Cost of completed Jobs
Direct material			46020
Direct labor			29500
Overhead			35400
Total			110920

Job Cost Sheet 52

Date	Direct materials	Direct labor	Overhead
Jan	35400	23600	23600*1.2 = 28320