Reference no: EM131775021

Problem - On August 1, Cimino Company had the following balances in its inventory accounts:

Materials inventory $16,350

Work in process inventory 21,232

Finished goods inventory 15,200

Work in process inventory is made up of three jobs with the following costs:

Job 30 job 31 job 32

Direct materials $2,650 $1,900 $3,650

Direct labor 1,900 1,340 4,000

Applied overhead 1,520 1,072 3,200

During August, Cimino Company experienced the following transactions:

a. Purchases materials on account for $21,00

b. Requisitioned materials: job 30 $12,500, job $31 11,200, job 32 $5,500

c. Collected and summarized job tickets job 30 250 hours at $12 per hour, job 31 275 hours at $15 per hour and job 32 140 hours at $20 per hour

d. Applied overhead on the basis of direct labor

e. Actual overhead was $8,718

f. Completed and transferred job 31 to the finished goods warehouse

g. Shipped job 31 and billed the customer for 130 percent of the cost

Required -

1. Prepare journal entries for the august transactions.

2. Calculate the ending balances of each of the inventory accounts as of August 31.