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CoursHeroTranscribedText: 3 2. Madsen Company employs a job-order costing system. Only three jobs - job 208. job 209, and job 210- were worked on during May and June 2009. Job 208 was completed on June 20; the other two jobs were uncompleted on June 30. Job cost sheets of the three jobs are given below: Job Cost Sheet Job 208 Job 209 Job 210 May costs incurred:* Direct materials $ 9,500 $ 5,100 Direct labor 8,000 3,000 Manufacturing 11,200 4,200 overhead June costs incurred: Direct materials 6,000 7,200 Direct labor 4,000 7,500 8,500 Manufacturing ? overhead 7,030 [Jobs 208 and 209 were started during May The following additional information is available: a. Manufacturing overhead is assigned to jobs on a basis of direct labor cost. b. Balances in the inventory accounts at May 31 were: Raw materials $ 30,000 Work in process Finished goods 50,000 Required: 1. Prepare T-accounts for Raw Materials, Work in Process, Finished Goods and Manufacturing Overhead. Enter the May 31 balances given above; in the case of Work in Process, compute the May 31 balance and enter it into the Work in Process T-account. 2. Prepare journal entries for June as follows: a) Prepare an entry to record the issue of materials into production, and post the entry to appropriate T-accounts. Indirect materials used during June totaled $3,600. b) Prepare an entry to record the incurrence of labor cost, and post the entry to appropriate T-accounts. Indirect labor cost totaled $7,000 for June. )/ Prepare an entry to record the incurrence of $19,400 in various actual manufacturing overhead costs for June. (Credit Accounts Payable.) 3. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Using this rate prepare a journal entry to record the application of overhead cost to jobs for June. Post this entry to appropriate T-accounts. 4) As stated earlier, job 208 was completed during June. Prepare a journal entry to show the transfer of T-accounts. this job off of the production line and into the finished goods warehouse. Post the entry to appropriate 5. Determine the balance at June 30 in the Work in Process inventory account. How much of this balance consists of costs traceable to job 209? To job 210? aw Mat

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