Michael Ortiz is a contractor specializing in custom-built jacuzzis. On May 1, 2010, his ledger contains the following data.Raw Materials Inventory....... $30,000Work in Process Inventory.......12,200Manufacturing Overhead ........2,500 (dr.)The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000.Subsidiary data for Work in Process Inventory on May 1 include:

During May, the following costs were incurred: (a) raw materials purchased on account$4,000, (b) labor paid $7,600, (c) manufacturing overhead paid $1,400.A summary of materials requisition slips and time tickets for the month of May reveals the following.

Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost.The jacuzzis for customers Taylor, Baker, and Joiner were completed during May. Eachjacuzzi was sold for $12,000 cash.Instructions(a) Prepare journal entries for the May transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of raw materials, labor, and overhead to production; and (iii) completion of jobs and sale of goods.(b) Post the entries to Work in Process Inventory.(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.(d) Prepare a cost of goods manufactured schedule forMay.

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Job Cost Sheets Job by Customer Taylor Baker Joiner Manufacturing Overhead Direct Materials Direct Labor $2,500 2,000 900 $2,000 $1,400 1,200 840 800 560 $5,400 $4,000 $2,800