sinatra industries, inc. uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:
a. materials purhcased on acct $32,760
b. materials requisitioned and factory labor used:
JOB… MATERIALS… FACTORY LABOR
301… $3,290… $3,080…
302… 4,025… 4,160…
303… 2,660… 2,080…
304… 9,030… 7,640…
305… 5,740… 5,810…
306… 4,170… 3,710…
for general factory use… 1,200… 4,550…
c. factory overhead costs incurred on account : $6,300
d. depreciation of machinery and equipment : $2,200
e. the factory overhead rate is $58 per machine hour. machine hours used:
JOB… MACHINE HOURS
301… 26
302… 38
303… 30
304… 80
305… 40
306… 26
total… 240
f. jobs completed: 301, 302, 303, and 305
g. jobs were shipped and customers were billed as follows:
Job 301 $9,150
Job 302 $12,350
Job 303 $16,600
INSTRUCTIONS>>>>>>
1. journalize the entries and record the summarized operations
2. post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memo account balances as of the end of the month.
3. prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. prepare a schedule of completed jobs on hand to support the balance in the finished goods account