Reference no: EM132774332
The following transactions occurred during the month of April for Kearney Company.
a. Goods were purchased on account.
b. Materials were requisitioned for use in production, $500 for Job #443 and the remainder for Job #444.
c. During the month, direct laborers worked 50 hours on Job #443 and 100 hours on Job #444. Direct laborers are paid at the rate of $8 per hour.
d. Overhead is applied using a plantwide rate of $7.50 per direct labor hour.
e Actual overhead for the month was $1,230 and was paid in cash.
f. Job #443 was completed and transferred to Finished Goods.
g. Job #442, which had been completed and transferred to Finished Goods in March, was sold on account for cost ($2,000) plus 25 percent.
Required
Problem 1. Prepare journal entries for transactions (a) through (e).
Problem 2. Prepare job-order cost sheets for Jobs #443 and #444. Prepare journal entries for transactions (f) and (8).
Problem 3. Prepare schedule of cost of goods manufactured for April. Assume that the beginning balance in the materials account was $1,400 and the beginning balance in the work-in-process account was zero.