Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed). During January, the company had the following transactions:
(a) Purchased $20,000 worth of materials on account.
(b) Recorded materials issued to production as follows: Job Number 201 202 Indirect materials Total Cost S 12,000 21,000 3,200 S 36,200
(c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number 201 202 Factory supervision Hours Total Cost 100 2,150 10,750 5.000 S 17,900 500
(d) Applied overhead to production at a rate of $25 per direct labor hour for 600 actual direct labor hours.
(e) Recorded the following actual manufacturing overhead costs: Total Cost 53,100 2,500 1,750 1.250 $8,600 Item Factory rent Paid in cash Factory equipment Incurred but not paid Prepaid policy Factory utilities Factory insurance
(f) Completed Job 201 and transferred it to Finished Goods Inventory.
(g) Sold Job 200 for $31,000. Job 202 was still in process at the end of January.