Adolphus Abbott is a contractor specializing in custom-built Jacuzzis. On May 1, 2016, his ledger contains the following data:

Raw Materials Inventory $30,000

Work in process Inventory 12,200

Manufacturing Overhead 2,500 (debit)

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:

Job Cost Sheets

Job by Customer Direct materials Direct Labor Manufacturing Overhead

Stiner $2,500 $2,000 $1,400

Alton 2,000 1,200 840

Herman 900 800 560

$5,400 $4,000 $2,800

During May, the following costs were incurred: raw materials purchased on account $4,000, labor paid $7,000, and manufacturing overhead paid $1,400.

A summary of materials requisition slips and time tickets for the month of May reveal the following:

Job by Customer Materials Requisition Slips Time tickets

Stiner $ 500 $ 400

Alton 600 1,000

Herman 2,300 1,300

Smith 1,900 2,300

5,300 5,000

General use 1,500 2,000

$6,800 $7,000

Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The Jacuzzis for customers Stiner, Alton, and Herman were completed during May. The three Jacuzzis were sold for a total of $36,000.

Required:

Prepare general journal entries for the May transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of raw materials, labor, and overhead to production; and (3) completion of jobs and sale of goods.

Post the entries to Work in Process Inventory

Reconcile the balance of work in process inventory with the costs of unfinished jobs.

Prepare a cost of goods manufactured schedule for May 2016.