High Tec Manufacturing uses a job order cost system with perpetual inventory for its specialized jobs.  At the beginning of 2020, there is one completed job on hand, Job Z29 with a cost of $134,000.  Also Job Z30 was started in 2019, but was not complete.  There was Direct Materials of $20,000, Direct Labor of $60,000, and Manufacturing Overhead Applied of $54,000 recorded during 2019 for Job Z30.  

Additional Information:

The following events occurred during 2020:

1. The company purchased raw materials of $800,000 on account.     
2. Raw materials were requisitioned during the year:

1. Job Z30: direct materials of $170,000 and indirect materials of $45,000.
2. Job Z31: direct materials of $280,000 and indirect materials of $75,000.
3. Job Z32: direct materials of $25,000 and indirect materials of $5,000.

3. Factory labor of $95000 was incurred, $900,000 was wages payable and $50,000 was income taxes withheld payable.
4. The factory labor cost is distributed to the specific jobs:

1. Job Z30: direct labor of $120,000 and indirect labor of $100,000.
2. Job Z31: direct labor of $220,000 and indirect labor of $200,000.
3. Job Z32: direct labor of $160,000 and indirect labor of $150,000.

5. Manufacturing overhead items incurred on account of $100,000.
6. Depreciation on factory equipment of $20,000 was recorded.
7. Manufacturing overhead is applied to each job:

1. Job Z30: overhead applied of $108,000.
2. Job Z31: overhead applied of $198,000.
3. Job Z32: overhead applied of $ 144,000

8. Job Z30 is complete and transferred to the finished goods inventory.
9. Job Z29 is sold on account for $195,000.  (Also record the Cost of Goods Sold for Z29).
10. Assuming that there were other jobs started in 2020, at year end and after all other entries have been made that there was a debit balance of $9,000 in the manufacturing overhead account.  Make the journal entry that closes the balance to Cost of Goods Sold.   

Required:

1.	Create job cost sheet for Job Z30 and for each job that was started in 2020.
2.	Record the events during 2020 in journal entry form.
3.	Post the information from the journal entries to T accounts.
4.	Record the information in the job order cost sheet.

 

Transcribed Image Text:

H. A Job No. Z32 Job No. 230 Job No. 231 Cost of completed job Cost of completed job 2 Cost of completed job 3 Direct materials 4 Direct Labor 5 Manufacturing overhead 6 Total Cost Direct materials Direct materials $20,000 $60,000 $54,000 Direct labor Direct labor Manufacuturing overhead Manufacturing overhead Total Cost Total Cost H. A Job No. Z32 Job No. 230 Job No. 231 Cost of completed job Cost of completed job 2 Cost of completed job 3 Direct materials 4 Direct Labor 5 Manufacturing overhead 6 Total Cost Direct materials Direct materials $20,000 $60,000 $54,000 Direct labor Direct labor Manufacuturing overhead Manufacturing overhead Total Cost Total Cost