Williamstown Manufacturing Company had the following inventories on March 1
Materials $14,000
Work in process — materials 8,000
Work in process — labor 4,000
Work in process — factory overhead 3,200
Finished goods 15,000
The three work in process accounts control three jobs with this information:
Job No. 621 Job No. 622 Job No. 623
Materials $2,800 $3,400 $1,800
Labor 1,600 1,500 900
Factory overhead . . . 1,280 1,200 720
Total $5,680 $6,100 $3,420
Materials $14,000
Work in process — materials 8,000
Work in process — labor 4,000
Work in process — factory overhead 3,200
Finished goods 15,000
The three work in process accounts control three jobs with this information:
Job No. 621 Job No. 622 Job No. 623
Materials $2,800 $3,400 $1,800
Labor 1,600 1,500 900
Factory overhead . . . 1,280 1,200 720
Total $5,680 $6,100 $3,420
The following information pertains to March operations
(a) Materials purchased and received, $22,000; terms, n/30.
(b) Materials requisitioned for production, $21,000. Of this amount, $2,400 were for indirect materials; the difference was distributed: $5,300 to Job No. 621, $7,400 to Job No. 622, and $5,900 to Job No. 623.
(c) Materials returned to the storeroom from the factory, $600, of which $200 were for indirect materials, the balance from Job No. 622.
(d) Materials returned to vendors, $800.
(e) Payroll, after deducting 6% for FICA tax and 12% for federal income tax, was $31,160. The payroll amount due the employees was paid during March.
(f) Of the payroll, direct labor represented 55%; indirect labor, 20%; sales sala-
ries, 15%; and administrative salaries, 10%. The direct labor cost was dis-
tributed: $6,420 to Job No. 621; $8,160 to Job No. 622, and $6,320 to Job
No. 623.
(g) An additional 9.2% is entered for employer's payroll taxes, representing the
employer's 6% FICA tax, 2.7% state unemployment insurance contribution,
and .5% federal unemployment insurance tax. Employer's payroll taxes related
to direct labor are charged to the factory overhead control account.
(h) Factory overhead, other than any previously mentioned, amounted to $5,500.
Included in this figure were $2,000 for depreciation of factory building and
equipment and $250 for expired insurance on the factory. The remaining over-
head, $3,250, was unpaid at the end of March.
(i) Factory overhead applied to production; 80% of the direct labor cost to be
charged to the three jobs based on the labor cost for March.
(j) Jobs No. 621 and No. 622 were completed and transferred to the finished
goods warehouse.
(k) Both Jobs No. 621 and No. 622 were shipped and billed at a gross profit of
40% of the cost of goods sold.
(1) Cash collections from accounts receivable during March were $65,450.
Required: (1) Job order cost sheets to post beginning inventory data.
(2) Journal entries to record the March transactions with current postings
to job order cost sheets.
(3) A schedule of inventories on March 31.
ries, 15%; and administrative salaries, 10%. The direct labor cost was dis-
tributed: $6,420 to Job No. 621; $8,160 to Job No. 622, and $6,320 to Job
No. 623.
(g) An additional 9.2% is entered for employer's payroll taxes, representing the
employer's 6% FICA tax, 2.7% state unemployment insurance contribution,
and .5% federal unemployment insurance tax. Employer's payroll taxes related
to direct labor are charged to the factory overhead control account.
(h) Factory overhead, other than any previously mentioned, amounted to $5,500.
Included in this figure were $2,000 for depreciation of factory building and
equipment and $250 for expired insurance on the factory. The remaining over-
head, $3,250, was unpaid at the end of March.
(i) Factory overhead applied to production; 80% of the direct labor cost to be
charged to the three jobs based on the labor cost for March.
(j) Jobs No. 621 and No. 622 were completed and transferred to the finished
goods warehouse.
(k) Both Jobs No. 621 and No. 622 were shipped and billed at a gross profit of
40% of the cost of goods sold.
(1) Cash collections from accounts receivable during March were $65,450.
Required: (1) Job order cost sheets to post beginning inventory data.
(2) Journal entries to record the March transactions with current postings
to job order cost sheets.
(3) A schedule of inventories on March 31.
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