Reference no: EM132632744

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed).

During January, the company had the following transactions:

(a) Purchased $67,000 worth of materials on account.

(b) Recorded materials issued to production as follows:

Job Number    Total Cost

201                   $10,400

202                      22,000

Indirect materials 5,000 $37,400

(c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

Job Number Hours Total Cost

201   117     $2,700

202    398     10,200

Factory supervision 4,600 $17,500

(d) Applied overhead to production at a rate of $25.00 per direct labor hour for 515 actual direct labor hours.

(e) Recorded the following actual manufacturing overhead costs:

Item Total Cost Description

Factory rent    $2,600

Paid in cash

Depreciation 4,700

Factory equipment

Factory utilities 3,400

Incurred but not paid

Factory insurance 3,000

Prepaid policy $13,700

(f) Completed Job 201 and transferred it to Finished Goods Inventory.

(g) Sold Job 200 for $51,300.

Job 202 was still in process at the end of January.

Required:

Question 1. Post the preceding transactions to T-accounts. (Note: Capture the offsetting of debits and credits to other accounts such as Cash, Payables, Accumulated Depreciation, and so on in Miscellaneous Accounts.)