(Journal entries; cost accumulation) Stockman Co. began 2010 with three jobs in process:
|
TYPE OF COST |
||||
|
Job No. |
Direct Material |
Direct Labor |
Overhead |
Total |
|
247 |
$ 77,200 |
$ 91,400 |
$ 36,560 |
$ 205,160 |
|
251 |
176,600 |
209,800 |
83,920 |
470,320 |
|
253 |
145,400 |
169,600 |
67,840 |
382,840 |
|
Totals |
$399,200 |
$470,800 |
$188,320 |
$1,058,320 |
During 2010, the following transactions occurred:
1. The firm purchased and paid for $542,000 of raw material.
2. Factory payroll records revealed the following:
- Indirect labor incurred was $54,000.
- Direct labor incurred was $602,800 and was associated with the jobs as follows:
|
Job No. |
Direct Labor Cost |
|
247 |
$ 17,400 |
|
251 |
8,800 |
|
253 |
21,000 |
|
254 |
136,600 |
|
255 |
145,000 |
|
256 |
94,600 |
|
257 |
179,400 |
3. Material requisition forms issued during the year revealed the following:
- Indirect material issued totaled $76,000.
- Direct material issued totaled $466,400 and was associated with jobs as follows:
|
Job No. |
Direct Material Cost |
|
247 |
$ 12,400 |
|
251 |
6,200 |
|
253 |
16,800 |
|
254 |
105,200 |
|
255 |
119,800 |
|
256 |
72,800 |
|
257 |
133,200 |
4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted overhead of $240,000 and total direct labor cost of $600,000 for 2010. Actual total factory overhead costs (including indirect labor and indirect material) for the year totaled $244,400.
5. Jobs #247 through #255 were completed and delivered to customers, who paid for the goods in cash. The revenue on these jobs was $2,264,774.
a. Journalize all preceding events.
b. Determine the ending balances for the jobs still in process.
c. Determine the cost of jobs sold, adjusted for underapplied or overapplied overhead.