Grand Valley Apparel Company uses a job order cost system. The following data summarizes the operations related to production for May 2010, the first month of operations:
a. Materials purchased on account, $68,000
b. Materials requisitioned and factory labor used
Job Materials Factory Labor
- 401 $9,200 $9,250
- 402 11,000 13,400
- 403 6,400 5,000
- 404 18,200 17,400
- 405 8,600 7,400
- 406 8,500 8,900
For general factory use 4,100 9,600
c. Factory overhead costs incurred on account, $2,750
d. Depreciation of machinery and equipment, $1870
e. The factory overhead rate is $25 per machine hour. Machine hours used:
Job Machine Hours
- 401 108
- 402 110
- 403 86
- 404 160
- 405 109
- 406 117
Total 690
f. Jobs completed: 401, 402, 403, 405
g. Jobs were shipped and customers were billed as follows: Job 401- $26,000 Job 402- $33,400 Job 405- $23,400
Instructions: 1. Journalize the entries to record the summarized operations 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memo account balances as of the end of the month 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.