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# 4 (Journal entries; cost accumulation) Stockman Co. began 2010 with three jobs in process: TYPE OF COST Job No.

38. LO.4 (Journal entries; cost accumulation) Stockman Co. began 2010 with three
jobs in process:
TYPE OF COST
Job No. Direct Material Direct Labor Overhead Total
247 \$ 77,200 \$ 91,400 \$ 36,560 \$ 205,160
251 176,600 209,800 83,920 470,320
253 145,400 169,600 67,840 382,840
Totals \$399,200 \$470,800 \$188,320 \$1,058,320
During 2010, the following transactions occurred:
1. Th e fi rm purchased and paid for \$542,000 of raw material.
2. Factory payroll records revealed the following:
• Indirect labor incurred was \$54,000.
• Direct labor incurred was \$602,800 and was associated with the jobs as
follows:
Job No. Direct Labor Cost
247 \$ 17,400
251 8,800
253 21,000
254 136,600
255 145,000
256 94,600
257 179,400
3. Material requisition forms issued during the year revealed the following:
• Indirect material issued totaled \$76,000.
• Direct material issued totaled \$466,400 and was associated with jobs as follows:
Job No. Direct Material Cost
247 \$ 12,400
251 6,200
253 16,800
254 105,200
255 119,800
256 72,800
257 133,200
4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted
overhead of \$240,000 and total direct labor cost of \$600,000 for 2010. Actual total
factory overhead costs (including indirect labor and indirect material) for the year
totaled \$244,400.
5. Jobs #247 through #255 were completed and delivered to customers, who paid for
the goods in cash. Th e revenue on these jobs was \$2,264,774.
a. Journalize all preceding events.
b. Determine the ending balances for the jobs still in process.
c. Determine the cost of jobs sold, adjusted for underapplied or overapplied

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38. LO.4 (Journal entries; cost accumulation) Stockman Co. began 2010 with three
jobs in process:
TYPE OF COST
Job No. Direct Material Direct Labor Overhead Total
247 \$ 77,200 \$ 91,400 \$ 36,560 \$...

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