Assignment

Prescott Company's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during September 20X3 follows:

Purchased raw materials on credit $125,000.

Purchased $84,000 cash for factory wages.

Paid $11,000 cash for miscellaneous factory overhead costs.

Materials requisitions record the use of the following material for the month:

Job 487                      $30,000

Job 488                      $20,000

Job 489                      $12,000

Job 490                      $14,000

Job 491                      $ 4,000

Total direct materials    $80,000

Indirect materials         $12,000

Total materials used     $92,000

Time tickets recorded for the use of the following labor for the month:

Job 487                  $ 8,000

Job 488                  $ 7,000

Job 489                  $25,000

Job 490                  $26,000

Job 491                  $ 2,000

Total direct labor     $68,000

Indirect labor          $16,000

Total labor used      $84,000

Required:

Prepare a job cost sheet for each job worked on during the month using the following simplified form:

Job Number:          ______

Materials...             $ _____

Labor...                  $ _____

Overhead...            $ _____

Total Cost...           $ ­­­_____

A. At the end of the month, Jobs 487, 489, and 490 remain in goods in process. Job 491 is finished and transferred out of goods in process to finished goods, and job 488 was sold. What are the balances at the end of this month of the three related accounts?

B. Job 488 is sold at the end of the month for $100,000. Prepare a gross income statement including the overhead indirect costs expensed within this month.