College Accounting Week 6 Homework (E26-2A, P26-8A)

College Accounting
Week 6 Homework

E26-2A Schedule of cost of goods Manufactured.
The following information is supplied for Morales Mining and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials.
Work in process, January 1 70,000
Materials inventory, January 1 28,000
Materials purchases 32,000
Materials inventory, December 31 24,000
Direct labor 44,000
Overhead 18,000
Work in process, December 31 56,000

P26-8A Job Order Costing Transaction
B &L Enterprisers makes garage doors. During the month of February, the company had four job orders: 303, 304, 305 and 306. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed.
a. Purchased raw materials on account $40,000
b. Issued direct materials to production:
Job No. 303 $8,000
Job No. 304 9,000
Job No. 305 7,000
Job No. 306 8,500
c. Issued indirect materials to production, $5,000.
d. Incurred direct labor costs;
Job. No. 303 $5,000
Job. No. 304 4,000
Job. No. 305 4,800
Job No 306 5,200
e. Charged indirect labor to production, $3,100
f. Paid electricity, heating oil, and repair bills for the factory and charged to production $4,900.
g. Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows: Job. No. 303 $3,000
Job No. 304 3,500
Job No. 305 3,000
Job No. 306 3,500
H. finished Job Nos. 303 - 306 and transferred to the finished goods inventory account as products J, K, L, and M.
I. Sold products J, K, L, and M for $19,000, $18,500, $16,000 and $18,300 respectively.
Required:
1. Prepare general journal entries to record transactions (a) through (i).
2. Post the entries to work in process and finished goods T accounts only.
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