Milanos Specialty Clothing, Inc., uses a job order cost system. A partial list of the accounts being

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Milano’s Specialty Clothing, Inc., uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows:

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $82,250

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,500

Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000

Accounts payable (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . none

The following transactions were completed during the month of November:

a. Materials purchases on account during the month, $74,000.

b. Materials requisitioned during the month:

1. Direct materials, $57,000.

2. Indirect materials, $11,000.

c. Direct materials returned by factory to storeroom during the month, $1,100.

d. Materials returned to vendors during the month prior to payment, $2,500.

e. Payments to vendors during the month, $68,500.

Required:

1. Prepare general journal entries for each of the transactions.

2. Post the general journal entries to T-accounts.

3. Balance the accounts and report the balances of November 30 for the following:

a. Cash

b. Materials

c. Accounts Payable


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Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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