Robert Perez is a contractor specializing in custom-built jacuzzis. On May 1, 2014, his ledger contains the following data.
Raw Materials Inventory
$30,000
Work in Process Inventory
$12,200
Manufacturing Overhead (debit)
$2,500
The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000 Subsidiary data for Work in Process on May 1 include:
Job Cost Sheets
Job by Customer
Direct materials
Direct labor
Mfg Ovrhd
Stiner
$2,500
$2,000
$1,400
Alton
2,000
1,200
840
Herman
900
800
560
$5,400
$4,000
$2,800
During May, the following costs were incurred:
(a) Raw materials purchased on account
$4,000
(b) Labor paid
$7,000
(c) Manufacturing overhead paid
$1,400
A summary of materials requisition slips and time tickets for the month of May reveals the following.
Job by Customer
Materials Requisition Slips
Time Tickets
Stiner
$500
$400
Alton
600
1,000
Herman
2,300
1,300
Smith
1,900
2,300
5,300
5,000
General use
1,500
2,000
$6,800
$7,000
Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The jacuzzis for customers Stiner, Alton, and Herman were completed during May. Each jacuzzi was sold for $12,000
Instructions
(a)(i)(a) Journalize the May transactions for purchase of raw materials
(a)(i)(b) Journalize the May transactions for factory labor costs.
(a)(i)(c) Journalize the May transactions for manufacturing overhead costs incurred.
(a)(ii)(a) Journalize the May transactions for the assignment of direct materials.
(a)(ii)(b) Journalize the May transactions for the assignment of direct labor.
(a)(ii)(c) Journalize the May transactions for the assignment of overhead to production.
(a)(iii)(a) Journalize the completion of the jobs.
(a)(iii)(b) Journalize the May transactions for the 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 goods.
(d) Prepare a cost of goods manufactured schedule for May.
