Reyes Manufacturing Company uses a job order cost system At

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed).

During January, the company had the following transactions:
(a) Purchased $60,000 worth of materials on account.

(b) Recorded materials issued to production as follows:

c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

(d) Applied overhead to production at a rate of $28.00 per direct labor hour for 507 actual direct labor hours.
(e) Recorded the following actual manufacturing overhead costs:

(f) Completed Job 201 and transferred it to Finished Goods Inventory.

(g) Sold Job 200 for $50,800.

Required:
1. Post the preceding transactions to T-accounts. (Note: Capture the offsetting of debits and credits to other accounts such as Cash, Payables, Accumulated Depreciation, and so on in Miscellaneous Accounts.)

2. Compute the ending balance in the following accounts:

a.Raw Materials Inventory

b.Work in Process Inventory

c.Finished Goods Inventory

d.Cost of Goods Sold (unadjusted)e.Manufacturing Overhead

3. Compute the total cost of Jobs 201 and 202 at the end of January.

Job Number	Total Cost
201	$	10,800
202		20,400
Indirect materials		5,400
	$	36,600

Solution

Raw material Inventory Bal . 1/1 41000 Work in progress 31200 Purchase 60000 anufacturing overheads 5400 101000 36600 Bal . 1/31 64400 Work in progress inventory Bal . 1/1 22500 Finished goods 38920 Direct material 31200 Direct labor 12400 Manufacturing overheads 14196 80296 38920 Bal . 1/31 41376 Finshed goods inventory Bal . 1/1 22000 Cost of goods sold 22000 Work in progress 38920 60920 22000 Bal 1/31 38920 Manufacturing overheads Actual overheads 12700 Work in progress 14196 (28*507) Material 5400 Labor 4100 22200 14196 Bal 1/31 8004 Cost of goods sold Finished goods 22000 38920 Total 22000 Sales revenue Sales revenue 50800 Misc. Accounts 2 Work in progress inventory 41376 Job 202 Finished goods inventory 38920 Job 201 Cost of goods sold 22000 Job 200 3 Job 201 Job 202 Beg. Work in progress 22500 Material 10800 20400 Labor 2400 10000 Manufacturing overheads (28$) 3220 10976 Total manufacturing cost 38920 41376