Stockman Co. began 2010 with three jobs in process:

During 2010, the following transactions occurred:
1. The firm purchased and paid for $542,000 of raw material.
2. Factory payroll records revealed the following:
• Indirect labor incurred was $54,000.
• Direct labor incurred was $602,800 and was associated with the jobs as follows:
Job No. Direct Labor Cost
247 ........$17,400
251 ....... 8,800
253 ...... 21,000
254 ....... 136,600
255 ......145,000
256 ...... 94,600
257 .......179,400
3. Material requisition forms issued during the year revealed the following:
• Indirect material issued totaled $76,000.
• Direct material issued totaled $466,400 and was associated with jobs as follows:
Job No. Direct Material Cost
247 .......$12,400
251 ....... 6,200
253 ........ 16,800
254 .......105,200
255 .......119,800
256 ........ 72,800
257 .......133,200
4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted overhead of $240,000 and total direct labor cost of $600,000 for 2010. Actual total factory overhead costs (including indirect labor and indirect material) for the year totaled $244,400.
5. Jobs #247 through #255 were completed and delivered to customers, who paid for the goods in cash. The revenue on these jobs was $2,264,774.
a. Journalize all preceding events.
b. Determine the ending balances for the jobs still in process.
c. Determine the cost of jobs sold, adjusted for underapplied or overappliedoverhead.

Transcribed Image Text:

TYPE OF COST Job No. 247 251 253 Totals Direct Material 77,200 176,600 145 400 399,200 Direct Labor 91,400 209,800 169,600 $470,800 Overhead 36,560 83,920 67840 $188,320 Total 205,160 470,320 382840 $1 20