Reyes manufacturing company uses a job order cost system. at the beginning of january, the company had one job in process (job 201) and one job completed but not yet sold (job 200). job 202 was started during january. other select account balances follow (ignore any accounts that are not listed).

Question Completion:

During January, the company had the following transactions:

a) Purchased $20,000 worth of materials on account.

b) Recorded materials issued to production as follows:

Job Number          Total Cost

201                           $12,000

202                            21,000

Indirect materials       3,200

                              $36,200

c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

Job Number   Hours   Total Cost

201                     100         $2,150

202                    500        10,750

Factory supervisor's         5,000

                                      $17,900

d) Applied overhead to production at a rate of $25 per direct labor hour for 600 actual direct labor hours.

e) Recorded the following actual manufacturing overhead costs:

Items                         Total Cost  Description

Factory rent              $3,100       Paid in cash

Depreciation              2,500       Factory equipment

Factory utilities           1,750        Incurred but not paid

Factory insurance      1,250        Prepaid policy

                                $8,600

f) Completed Job 201 and transferred it to Finished Goods Inventory.

g) Sold Job 200 for $31,000.

Job 202 was still in process at the end of January.

Requirement: Post all transactions to T-accounts, including offsetting accounts, like the Cash Account, etc.

Reyes Manufacturing Company

T-accounts:

Raw materials

Account Titles                 Debit     Credit

Accounts payable        $20,000

Job 201                                       $12,000

Job 202                                        21,000

Indirect materials                          3,200

Accounts payable

Account Titles                 Debit     Credit

Raw materials                             $20,000

Job 201

Account Titles                    Debit     Credit

Raw materials                 $12,000

Salaries expenses              2,150

Manufacturing overhead  2,500

Finished Goods                              $16,650

Job 202

Account Titles                    Debit     Credit

Raw materials                 $21,000

Salaries expenses            10,750

Manufacturing overhead 12,500

Ending Balance                              $44,250

Finished Goods Inventory

Account Titles                    Debit     Credit

Job 201                             $16,650

Cost of Job 200 sold                      $

Cost of goods sold

Account Titles                    Debit     Credit

Finished goods                   $

Sales Revenue

Account Titles                    Debit     Credit

Cash                                              $31,000

Cash Account

Account Titles                   Debit     Credit

Sales revenue              $31,000

Manufacturing overhead

Account Titles                 Debit     Credit

Raw materials               $3,200

Salaries expenses          5,000

Job 201                                          $2,500

Job 202                                          12,500

Salaries Expense

Account Titles                 Debit     Credit

Job 201                                        $2,150

Job 202                                        10,150

Manufacturing overhead             5,000

Explanation:

All the accounts involved in Reyes Manufacturing Company's January transactions are posted to the general ledger in the form of T-accounts with debit and credit sides.  The balances are not extracted.