Ialani Corpuses a job order costing system for the yachts it constructs. On September 1, 2010, the… 1 answer below »

(Journal entries; assigning costs to jobs; cost accumulation) Ialani Corpuses a job order costing system for the yachts it constructs. On September 1, 2010, the company had the following account balances:

Raw Material Inventory

$ 332,400

Work in Process Inventory

1,512,600

Cost of Goods Sold

4,864,000

On September 1, the three jobs in Work in Process Inventory had the following balances:

Job #75

$586,400

Job #78

266,600

Job #82

659,600

The following transactions occurred during September: Sept. 1 Purchased $1,940,000 of raw material on account.

Sept. 1

Purchased $1,940,000 of raw material on account.

4

Issued $1,900,000 of raw material as follows: Job #75, $289,600; Job #78, $252,600; Job #82, $992,200; Job #86, $312,400; and indirect material, $53,200.

15

Prepared and paid the $757,000 factory payroll for September 1–15. Analysis of this payroll showed the following information:

Job #75

9,660 hours

$ 84,600

Job #78

26,320 hours

267,200

Job #82

20,300 hours

203,000

Job #86

10,280 hours

110,800

Indirect labor wages

91,400

15

On each payroll date, Ialani Corp. applies manufacturing overhead to jobs at a rate of $12.50 per direct labor hour.

15

Job #75 was completed, accepted by the customer, and billed at a selling price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar.

20

Paid the following monthly factory bills: utilities, $39,600; rent, $70,600; and accounts payable (accrued in August), $196,800.

24

Purchased raw material on account, $624,000.

25

Issued $772,200 of raw material as follows: Job #78, $154,800; Job #82, $212,600; Job #86, $349,000; and indirect material, $55,800.

30

Recorded additional factory overhead costs as follows: depreciation, $809,000; expired prepaid insurance, $165,400; and accrued taxes and licenses, $232,400.

30

Recorded and paid the factory payroll for September 16–30 of $714,400. Analysis of the payroll follows:

Job #78

8,940 hours

$177,400

Job #82

13,650 hours

228,400

Job #86

9,980 hours

243,600

Indirect labor wages

65,000

30

Applied overhead for the second half of the month to jobs.

a. Journalize the September transactions.

b. Use T-accounts to post the information from the journal entries in (a) to the job cost subsidiary accounts and to general ledger accounts.

c. Reconcile the September 30 balances in the subsidiary ledger with the Work in Process Inventory account in the general ledger.

d. Determine the amount of underapplied or overapplied overhead for September.

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