What was cost of goods manufactured for January? (Show supporting work.)

What was cost of goods manufactured for January? (Show supporting work.)

Example Manufacturing Company uses a job order
costing system. The following information summarizes its operations related to
production for January, its first month of operations.

A. Purchased production materials on account,
$82,000.

B. Production materials of $79,600 were
requisitioned to the factory for the five jobs started in January and for
general factory use as follows:

Job

Materials

Job No. 1001

$10,300

Job No. 1002

13,670

Job No. 1003

11,200

Job No. 1004

18,800

Job No. 1005

21,900

General factory use


3,730


$79,600

C. Factory labor costs of $65,400 were
incurred. The employee time tickets provided the following:

Job

Factory Labor

Job No. 1001

$ 8,300

Job No. 1002

10,250

Job No. 1003

9,200

Job No. 1004

15,300

Job No. 1005

17,400

General factory use

4,950


$65,400

D. Factory overhead is allocated to jobs at a rate
of $40 per machine hour. Machine hours used were:

Job

Machine Hours

Job No. 1001

54

Job No. 1002

72

Job No. 1003

58

Job No. 1004

90

Job No. 1005

96


370

E. Depreciation on the factory machinery and
equipment was $6,500.

F. Factory overhead costs incurred on account were
$8,300.

G. Jobs 1001, 1002 and 1004 were completed.

H. Jobs 1001 and 1002 were shipped and the customers
were billed $24,000 for job 1001 and $31,000 for job 1002.

REQUIRED:

Part 1: Prepare a schedule summarizing manufacturing
costs by job incurred in January. Use the following columns and provide
column totals.

Job Direct
Materials Direct
Labor
Factory Overhead
Total

Part 2: What are the January 31 balances for
each of the following accounts? Support your answers by indicating the
jobs in that balance.

Work in Process
Inventory

Finished Goods
Inventory

Cost of Goods
Sold

Part 3: What was cost of goods manufactured
for January? (Show supporting work.)


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