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In June, Sierra Company worked only on Job No. 100 and completed it on June 30. There were no prior costs accumulated on Job No. 100 before June 1. During the month, the company purchased and used $10,800 of direct materials, used 2,000 machine-hours, and incurred $19,200 of direct labor costs.
Question 1: Assuming manufacturing overhead is applied at the rate of $12 per machine-hour, what is the total cost of Job No. 100?
Question 2: Prepare journal entries to assign the materials, labor, and manufacturing overhead costs to production and to record the transfer of Job No. 100 to Finished Goods Inventory.
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