Q2. The following is information regarding the March operations of Better Products Company: The books show these account

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Q2 The Following Is Information Regarding The March Operations Of Better Products Company The Books Show These Account 1 (111 KiB) Viewed 39 times

Q2. The following is information regarding the March operations of Better Products Company: The books show these account balances as of March 1: Finished Goods $ 78,830 Work in Process 292,621 Materials 65,000 Over applied FOH (Cr. Balance) 12,300 The work in process account is supported by these job order cost sheets: Job Item Direct Direct Factory Material Labour Overhead = Total 204 80,000 Balloons $ 15,230 $ 21,430 $13,800 = 50,460 205 5,000 liters Rafts 40,450 55,240 22,370 = 118,060 206 10,000 Life Belts 60,875 43.860 19,366 = 124,101 During March, these transactions occurred: a) Purchase of materials $42,300 b) Purchase of special materials for new job 207, $5800 which calls for $4000 life jacket c) Payroll data for March: Job Amount Hours 204 $26,844 6,711 205 22,750 6.500 206 28.920 7,230 207 20,370 5.820 Indirect labour cost $9480; factory superintendence $3,000. Payroll deductions: FICA tax 6.5%; employees' income tax 12%. (percentage to be applied to gross salary). d) Employer's payroll taxes: FICA 6.5%; state unemployment 1.6%; federal unemployment tax 0.7%. These taxes are charged to Factory overhead account. e) Materials issued: Job 204 $ 9,480 Job 205 11,320 Job 206 10.490 Job 207 16,640 (excluding special purchase of $5800 which is also issued at this time) f) Other factory overhead incurred or accrued: a. Insurance on factory $ 830 Coal expense $ 1,810 b. Tax on real estate 845 Power 3,390 c. Depreciation - Machinery 780 Repairs 2,240 d. Depreciation - Factory Bldg 840 Indirect supplies 1,910 e. Light 560 g) Factory Overhead is applied at the rate of $1.15 per direct labour hour. h) Shipped and billed job 204 at a price $ 117,500. Required: 1) Journal entries to record these transactions. 2) Total cost of each job at the end of March