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Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 2,000 units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials		3 pounds at $1.00 per pound		$3.00
Direct labor		1.10 hour at $8.00 per hour		8.80
Overhead		2 hours (variable $4.40 per machine hour; fixed $3.30 per machine hour)		15.40
Standard cost per unit				$27.20

Normal capacity for the month was 4,310 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 6,200 pounds of raw materials on account at $1.04 per pound.
2.		Requisitioned 6,200 pounds of raw materials for Job No. 12.
3.		Incurred 2,320 hours of direct labor at a rate of $7.90 per hour.
4.		Worked 2,320 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $32,100.
6.		Applied overhead to Job No. 12 on basis of standard machine hours allowed.
7.		Completed Job No. 12.
8.		Billed customer for Job No. 12 at a selling price of $190,000.

b) Post to the job order cost accounts.

Raw Materials Inventory, Factory Labor, Manufacturing Overhead, Materials Price Variance, Materials Quantity Variance, Labor Price Variance, Labor Quantity Variance, Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold.

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