Answer Happy

Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,000 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used. Job 201 Job 202 Total direct labor $ 48,200 23,600 c. Time tickets show the following labor used for the month. Indirect labor Total labor used 71,800 8,620 $ 80,420 $ 39,200 12,600 51,800 24,200 $ 76,000 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. (1) Sold Job 201 for $163,760 on credit. (2) Record cost of goods sold for Job 201. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment Rent on factory building (payable) Factory utilities (payable) Expired factory insurance. Total other factory overhead costs $ 32,000 500 800 3,000 $ 36,300

Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance. Beginning Balance Ending balance Beginning Balance Ending balance Beginning Balance Ending balance Raw Materials Inventory 0 Factory Overhead 0 Cost of Goods Sold 0 0 Beginning Balance Ending balance Beginning Balance Ending balance Work In Process Inventory 0 Finished Goods Inventory 0 0