Question

Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred:

May	1	Purchased materials on account for $29,670.
	3	Requisitioned materials totaling $24,500 for use in production. Of the total, $9,200 was for Job 58, $8,900 for Job 59, and the remainder for Job 60.
	31	Incurred direct labor for the month of $32,400, with an average wage of $18 per hour. Job 58 used 800 hours; Job 59, 600 hours; and Job 60, 400 hours.
	31	Incurred and paid actual overhead of $17,880 (credit Various Payables).
	31	Charged overhead to production at the rate of $4.80 per direct labor hour.
	31	Completed and transferred Jobs 58 and 59 to Finished Goods.
	31	Sold Job 57 (see beginning balance of Finished Goods) and Job 58 to their respective clients on account for a price of cost plus 40%.

Beginning balances as of May 1 were:

Materials	$2,300
Work in Process	0
Finished Goods (Job 57)	25,600

	Required:
1.	Prepare journal entries for transactions from May 1 through 31.
2.	Prepare brief job-order cost sheets for Jobs 58, 59, and 60.
3.	Calculate the ending balance of Raw Materials. $_______________
4.	Calculate the ending balance of Work in Process. $______________
5.	Calculate the ending balance of Finished Goods. $________________

	Yurman Inc. Job Order Cost Sheets For the Month of May
1		Job 58	Job59	Job 60
2
3
4
5

		General Journal
	Date	Account	Post. Ref.	Debit	Credit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

CHART OF ACCOUNTS
Yurman Inc.
General Ledger
ASSETS 110 Cash 120 Accounts Receivable 131 Supplies 132 Prepaid Insurance 141 Raw Materials 142 Work in Process 143 Overhead Control 144 Finished Goods 170 Land 180 Equipment 181 Accumulated Depreciation LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Various Payables EQUITY 310 Common Stock 320 Retained Earnings	REVENUE 410 Sales Revenue EXPENSES 510 Cost of Goods Sold 520 Insurance Expense 530 Wages Expense 540 Supplies Expense 550 Utilities Expense 560 Depreciation Expense 590 Miscellaneous Expense

Refer to the list below for the exact wording of text items within your job-order cost sheets.

Amount Descriptions
Applied overhead
Direct labor
Direct materials
Total

Answer 1