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Robert Perez 30000

Price: $2.50

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  2,500

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 by Customer  Direct Materials   Direct Labor   Manufacturing overhead 
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: raw materials purchased on account
$4,000, labor paid $7,000, and manufacturing overhead paid $1,400.

A summary of materials requisition slips and time tickets for the month of May reveals
the following.

Customer Job  Mateirals Requirement 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. The three
jacuzzis were sold for a total of $36,000.

(a) Prepare journal entries for the May transactions: (i) for purchase of raw materials, factory
labor costs incurred, and manufacturing overhead costs incurred; (ii) 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
(d) Prepare a cost of goods manufactured schedule for May

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