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The corporation worked on three jobs during its first year. Data about these jobs follows. Assume all transactions are cash transactions unless otherwise indicated

Direct Material Used

Direct Labor

Job 1 $10,000

Job 1 $12.000

Job 2 $31,000

Job 2 $30.000

Job 3 $23,500

Job 3 $34.000

JOBS

Job 1

Job 2

Job 3

Totals

Direct Materials

Direct Labor

Overhead Applied

Job 1

Job 2

Job 3

Totals Cost per Job

(SUM DM+DL+Overhead Applied)

The corporation applies factory overhead using a predetermined overhead rate of $0.65 per direct labor dollar. It completed Jobs 1 and sold Job 1.

Required: Record these transactions in the worksheet and total each column.

1. Issued $305,000 of common stock.
2. Purchased $33,000 of raw materials.
3. Record direct material used.
4. Paid direct labor production workers.
5. Applied overhead using $0.65 per direct labor dollar. (the value of the table)
6. Record actual overhead for $49,000.
7. Transferred the cost of Job 1 the finished goods inventory.
8. Sold Job 1, recognizing $96,900.
9. Record cost of goods sold for the Job 1.
10. Paid accounts payable.
11. Recognized $8,000 of selling, general, and administrative expenses.
12. Closed any account over-or-underapplied overhead against cost of goods sold.

Cash

Assets

WIP

Raw

Material

Finished

Goods

200,000

0

0

Manufactuing

Overhead

Liabilities

Accounts

Payable

10,000

Equity

Common

Stock

90,000

Explanation

Retained

Earnings

100,000

Beg

Balance

0

0

1

2

3

4

5

6

7

8

9

10

11

Total

Similar situation three of the test The corporation worked on three jobs during its first year. Data about these jobs follows. Assume all transactions are cash transactions unless otherwise indicated. The corporation applies factory overhead using a predetermined overhead rate of $0.65 per direct labor dollar. It completed Jobs 1 and sold Job 1. Required: Record these transactions in the worksheet and total each column. 1. Issued $305,000 of common stock. 2. Purchased $33,000 of raw materials. 3. Record direct material used. 4. Paid direct labor production workers. 5. Applied overhead using $0.65 per direct labor dollar. (the value of the table) 6. Record actual overhead for $49,000. 7. Transferred the cost of Job 1 the finished goods inventory. 8. Sold Job 1, recognizing $96,900. 9. Record cost of goods sold for the Job 1. 11. Recognized $8,000 of selling, general, and administrative expenses. 10. Paid accounts payable. 12. Closed any account over-or-underapplied overhead against cost of goods sold

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