Question

Snoopy Company uses a job order costing system. The following inventory balances are available on January 1, 2020:

Raw Materials $22,400

Work in Process $92,500

Finished Goods $145,600

The Work in Process Inventory consisted of 3 jobs: #401 $33,800; #402 $21,400; and #403 $37,300

The Finished Goods Inventory consisted of 2 jobs: #399 $76,200 and #400 $69,400

Snoopy uses a normal costing system with an overhead rate based on machine hours. The following budgeted information was available for the year 2020: Factory overhead costs $245,000 and machine hours 35,000.

During 2020, the following transactions took place:

1. Raw materials costing $120,000 were purchased on account.
2. Total factory labor charges accrued were $257,400.
3. A summary of material requisitions and time tickets appeared as follows:

Job No.	Material Requisitions	Direct Labor Cost	Machine Hours
401	$9,800	$16,800	3,300
402	6,900	12,700	2,900
403	7,700	13,600	3,400
404	17,100	28,400	8,600
405	7,900	12,900	3,100
406	9,500	18,100	8,800
407	19,300	36,200	2,700
408	8,100	10,300	3,300
sub-total	$86,300	$149,000	36,100
Indirect	28,700	108,400
Total	$115,000	$257,400

4. Other factory overhead costs include $42,500 depreciation on factory equipment, $8,300 of expired factory insurance, $9,500 of accrued property taxes, and $46,000 of miscellaneous factory costs paid in cash.

5. Job Nos. 401, 402, 403, 405, and 407 were completed.

6. Job Nos. 399, 400, 401, 403, and 407 were sold for $650,000 cash.

Required:

A. Complete the cost flow diagram and job order cost sheets in the attached work paper. Be sure to enter the beginning balances of the inventory accounts and be sure to compute and SHOW the ending balances of the accounts.

B. Verify the ending work in process and ending finished goods inventory balances by reconciling to the job cost sheets and SHOW this on your sheet.

Using the information from Question 6, prepare the required journal entries to record the transactions below:

General Journal
Debit Account Title	Credit Account Title	Dr	Cr

Required:

Using the information from Question 6, prepare a manufacturing statement and a partial income statement.

Beginning Raw Materials				Sales
Raw Material Purchases				Cost of Goods Sold:
Raw Materials Available for Use				Beginning Finished Goods
Ending Raw Materials				Cost of Goods Manufactured
Raw Materials Used				Cost of Goods Available for Sale
Indirect Materials				Ending Finished Goods
Direct Materials				Unadjusted Cost of Goods Sold
Direct Labor
Factory Overhead				Adjusted Cost of Goods Sold
Total Current Manufacturing Costs				Gross Profit
Beginning Work in Process
Total Cost of Work in Process
Ending Work in Process
Cost of Goods Manufactured

Answer 1