The November 1 balances for the following accounts are:
Raw Materials Inventory $ 5,000
Work in Process Inventory $ 4,500 (Job 206 - $1,500; Job 207 - $3,000)
Finished Goods Inventory $ -0-
Requirements:
1. Record the following journal entries for the month of November.
2. Prepare a T-account for each of the three inventory accounts. Compute the ending balance of each account.
3. Prepare a T-account for Factory Overhead and compute the amount of over/under-applied overhead.
4. Compute the total cost of each job.
1 - The transactions for November are as follows:
a. Purchased materials on account, $20,000.
b. Issued materials to production as follows:
Job 206 - $2,750
Job 207 - $3,100
Job 208 - $2,500
Job 209 - $1,500
Job 210 - $1,850
Job 211 - $2,100
c. Issued indirect materials to production, $1,300.
d. The direct labor rate is $12 per hour. Direct labor hours incurred are as follows:
Job 206 220 DLH
Job 207 240 DLH
Job 208 180 DLH
Job 209 110 DLH
Job 210 130 DLH
Job 211 150 DLH
e. Indirect factory labor incurred, $3,000.
f. Incurred various actual factory overhead costs on account, $7,750.
g. Factory overhead is applied at a rate of $9 per direct labor hour.
h. Completed Jobs #206, 207, and 211.
i. Sold Jobs #206 and #207. Customers billed $11,100 for Job #206 and $14,000 for Job #207.