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PROBLEM 2

# PROBLEM 2 - PROBLEM 2-1A(a \$400,000 20,000 direct labor...

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PROBLEM 2-1A (a) \$400,000 ÷ 20,000 direct labor hours = \$20 per direct labor hour (b) See solution to part (e) for job cost sheets (c) Raw Materials Inventory ............................................. 45,000 Accounts Payable ................................................ 45,000 Factory Labor ............................................................... 35,500 Employer Payroll Taxes Payable ....................... 6,500 Factory Wages Payable ...................................... 29,000 Manufacturing Overhead ............................................ 35,500 Raw Materials Inventory ..................................... 10,000 Factory Labor ....................................................... 7,500 Accumulated Depreciation ................................. 12,000 Accounts Payable ................................................ 6,000 (d) Work in Process Inventory ......................................... 40,000 Raw Materials Inventory ..................................... 40,000 (\$5,000 + \$20,000 + \$15,000) Work in Process Inventory ......................................... 24,000 Factory Labor ....................................................... 24,000 (\$3,000 + \$12,000 + \$9,000)

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Work in Process Inventory ......................................... 32,000 Manufacturing Overhead .................................... 32,000 (200 + 800 + 600) X \$20 per hour See solution to part (e) for postings to job cost sheets.
PROBLEM 2-1A (Continued) (e) Job Cost Sheets Job No. 25 Date Direct Materials Direct Labor Manufacturing Overhead Beg. Jan. \$10,000 5,000 \$15,000 \$6,000 3,000 \$9,000 * \$ 9,000 * * 4,000 * * \$13,000 * Cost of completed job Direct materials ................................................................ \$15,000 Direct labor ....................................................................... 9,000 Manufacturing overhead ................................................. 13,000 Total cost .................................................................................. \$37,000 *\$20 X 200 direct labor hours Job No. 26 Date Direct Materials Direct Labor

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PROBLEM 2 - PROBLEM 2-1A(a \$400,000 20,000 direct labor...

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