1. Download the attached document and identify it with your name.

2. Complete the exercise, save and send it as an attachment in the Ch. 20 Assignment.

Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

1). Direct materials requisitioned during the month:

Job 101 $25,000

Job 102 23,000

Job 103 24,000

$72,000

2). Direct labor incurred and charged to jobs during the month was:

Job 101 $33,000

Job 102 36,000

Job 103 27,000

$96,000

3). Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 70% of direct labor costs.

4). Actual manufacturing overhead costs incurred during the month amounted to $76,000.

5). Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month.