Sager Company manufactures variations of its product, atechnopress, in response to custom orders from its customers. OnMay 1, the company had no inventories of work in process orfinished goods but held the following raw materials.
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| Material M | 200 | units | | @ | | $ | 300 | | = | | $ | 60,000 | |
| Material R | 130 | units | | @ | | | 260 | | = | | | 33,800 | |
| Paint | 55 | units | | @ | | | 100 | | = | | | 5,500 | |
| Total cost | | | | | | | | | | | $ | 99,300 | |
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On May 4, the company began working on two technopresses: Job 102for Worldwide Company and Job 103 for Reuben Company.
- Purchased raw materials on credit and recorded the followinginformation from receiving reports and invoices.
Receiving Report No. 426, Material M, 300 units at $300 each.
Receiving Report No. 427, Material R, 125 units at $260 each.
Record these purchases with a single journal entry. Enter thereceiving report information on the materials ledgercards.
- Requisitioned the following raw materials for production.
Requisition No. 35, for Job 102, 108 units of Material M.
Requisition No. 36, for Job 102, 72 units of Material R.
Requisition No. 37, for Job 103, 56 units of Material M.
Requisition No. 38, for Job 103, 99 units of Material R.
Requisition No. 39, for 17 units of paint.
Enter amounts for direct materials requisitions on the materialsledger cards and the job cost sheets. Enter the indirect materialsamount on the materials ledger card.
- Received the following employee time tickets for work inMay.
Time tickets Nos. 1 to 10 for direct labor on Job 102,$82,000.
Time tickets Nos. 11 to 30 for direct labor on Job 103,$62,000.
Time tickets Nos. 31 to 36 for equipment repairs, $19,250.
Record direct labor from the time tickets on the job costsheets.
- Paid cash for the following items during the month: factorypayroll, $163,250, and miscellaneous overhead items, $128,000. Usethe time tickets to record the total direct and indirect laborcosts.
- Finished Job 102 and transferred it to the warehouse. Thecompany assigns overhead to each job with a predetermined overheadrate equal to 80% of direct labor cost.
Enter the allocated overhead on the cost sheet for Job 102, fill inthe cost summary section of the cost sheets.
- Delivered Job 102 and accepted the customer’s promise to pay$430,000 within 30 days.
- Applied overhead cost to Job 103 based on the job’s directlabor to date.
Required:
Complete the materials ledger cards for Material M, Material R, andpaint using the information given in part a and b. Complete the jobcost sheets for Jobs 102 and 103 using the information given inpart a, b, c and e. Prepare journal entries for part a throughg.
